De Cos asks the bank to provision on time in the face of the greater risk of recession
The Bank of Spain recommends that banks make provisions “adequately and on time” given the greater risk that Spain may enter a recession in the coming months. The supervisor maintains its central scenario of economic growth for the country. He forecasts that the economy will grow by 4.5% this year and that it will cool down to 1.4% in 2023. His calculation is somewhat more optimistic than the one presented this Friday by the European Commission in its autumn forecasts, although Brussels it does place our country as the only one among the large euro economies that will manage to avoid recession. The scenario, in any case, is complicated by high and persistent inflation and the protracted war in Ukraine.
The General Director of Financial Stability, Regulation and Resolution, Ángel Estrada, has once again asked entities to “take into account the current macroeconomic environment” and to “provide adequately, on time, to stress their models” in the presentation of the Report of Financial Stability of autumn 2022. In it, it states that the sector would maintain an “adequate” aggregate solvency level in the face of the materialization of macroeconomic risks, although it asks it to maintain caution in the design of its capital allocation plans and provisions.
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