The 14 Spanish banks with domestic operations examined by the consultancy firms Oliver Wyman and Roland Berger have a capital requirement between 51 and 62 billion in a 'stress' situation market and taking into account all loan segments. This is what Oliver Wyman writes in his report, while for Roland Berger the capital needs of the banks in question are equal to 51,8 billion, always in negative market situations.
The assessment is based on a three-year period and the final figure appears well below the 100 billion euro of maximum support made available by Europe for the Iberian banking system. The results of the two audits commissioned by Madrid were released by the Spanish authorities who have announced in the near future a report on the needs of individual banks based on their capacity to absorb potential losses in the next few years.
The worst scenario, on which the maximum estimates of 51-62 billion capital needs are based, is worse than that already assumed by the IMF and assumes a 6,5% drop in Spanish GDP and a 26,4% of property prices. The baseline scenario, less catastrophic, estimates the requirement of the 14 banks examined at 16-25 billion for Oliver Wyman and 25,6 billion for Roland Berger.
