MADRID ( TheStreet) -- Spain's central bank has ordered 12 lenders, including Deutsche Bank (DB) and Barclays (BCS), to raise ¿15.15 billion ($20.9 billion) in fresh capital to cover potential losses, as the country continues to grapple with sharp declines in real estate value.
The Banco de España unveiled the results of its stress test on Thursday, which analyzed the financial condition of dozens of banks and whether they ought to increase the amount of capital they have on hand. Only two of the banks subject to the stress test were Spanish.
Those needing to raise capital were mostly small lenders, including the savings banks Bankia, Base, Cívica, Mare Nostrum, Catalunyacaixa, Novacaixagalicia, Unnim and Caja España de Inversiones, in addition to bigger commercial lenders Bankinter, Bankpyme, Barclays and Deutsche Bank.
The banks have 15 days to submit plans to meet The Banco de España's standard of a minimum core capital ratio of 8% for certain institutions and 10% for others. The central bank will approve plans within another 15 days and the lenders will have until Sept. 30 to comply with the edict.The Banco de España said that some lenders may have to close branches or sell assets to meet the requirements, while others have announced plans to tap the capital markets. Barclays must raise ¿552 million and Deutsche Bank must raise ¿182 million. Both have already submitted plans to raise the funds. Other companies that were tested and passed Spain's stricter capital requirements include Citigroup (C), General Electric's (GE) lending subsidiary, BNP Paribas and UBS (UBS). -- Written by Lauren Tara LaCapra in New York.
>To contact the writer of this article, click here: Lauren Tara LaCapra. >To follow the writer on Twitter, go to http://twitter.com/laurenlacapra. >To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV