Banks in Spain have "strong capital and liquidity positions" and have shown resilience during market tensions, according to central bank governor Pablo Hernández de Cos during an interview published on Tuesday.
"Due to the retail-oriented commercial banking business model, which is the majority in our financial system, the Spanish banking sector has shown remarkable results in the last year," the governor told the Expansion newspaper.
The interview with De Cos was unveiled following the recent takeover of Credit Suisse by UBS.
Last week, deputy Bank of Spain governor Margarita Delgado said banks in Spain only had a "residual" exposure to Credit Suisse. Reuters news agency reports that the total exposure in Spain was under €1 billion, according to a source with knowledge of the issue.
Turmoil in the market kicked off earlier this month following the collapse of Silicon Valley Bank and continued with liquidity concerns surrounding First Republic Bank.
Shares in Santander, BBVA and Sabadell were up around 4% early on Tuesday as they rallied from last week's sharp losses.
Following on from comments made by European Central Bank President Christine Lagarde, the Bank of Spain governor added that the banking sector within the euro area was resilient.
"This has been the result of the regulatory reform agreed at international level over the last decade, which, in the case of Europe, has been applied to all banks, regardless of their size," De Cos said, who is also a member of the European Central Bank's governing council.
He went on to say that European banks have continued to reduce bad loans, boosted their profitability and benefitted from the positive impact of higher interest rates.
deVere Spain’s Public Relations Department deals with all areas of the media and external communications including international, national, regional, local, trade, consumer, print, broadcast, social and online. The Department aims to provide a helpful service to journalists, broadcasters and editors, amongst others, and reply to all media enquiries, including urgent enquiries out of hours, within agreed deadlines. Our press office does not have access to client details and will not be able to assist with individual client enquiries. Please contact deVere Spain’s Head of Public Relations on [email protected] or call +44 2071220925