FXstreet.com (Barcelona) - New Bank of Spain Governor Luis Maria Linde said on Tuesday that the deterioration of market confidence in Spain was partly due to inadequate supervision by the central bank under former head Miguel Angel Fernandez Ordonez.
“The loss of confidence in our banking system cannot be blamed exclusively on the global economic downturn, on problems in the euro zone.. or on our own recession”, Governor Linde said, adding that the current conservative government took firmer measures to clean up the financial sector.
He also assured that Spain does not intend to maintain public banks, although it might need to provide aid for another distressed financial institution in the nearest future. Still, Linde allowed for a possibility of liquidating banks which are not viable anymore.
The Bank of Spain Governor said that Spanish GDP would fall 1.5% this year.
“The loss of confidence in our banking system cannot be blamed exclusively on the global economic downturn, on problems in the euro zone.. or on our own recession”, Governor Linde said, adding that the current conservative government took firmer measures to clean up the financial sector.
He also assured that Spain does not intend to maintain public banks, although it might need to provide aid for another distressed financial institution in the nearest future. Still, Linde allowed for a possibility of liquidating banks which are not viable anymore.
The Bank of Spain Governor said that Spanish GDP would fall 1.5% this year.
