The Spanish football team won the World Cup with a strategy that relied on dominating possession. But whereas keeping the ball served the country’s footballers well, a similarly grabby attitude among Spain’s banks is cause for concern.
The latest statistics from the European Central Bank show that Spanish banks boosted their borrowing from the central bank significantly last month, taking €126bn, or nearly 50% more than they borrowed the month before. Euro-zone banks as a whole trimmed their borrowing from the ECB by 4% in June.
As Bloomberg notes, no Spanish banks have sold bonds publicly in the past two months, as jittery markets demand high yields amid fears over the health of Iberian lenders’ balance sheets. Until next week, when the results of the EU’s banking stress tests will relieve or ratchet up these fears, Spain’s banks may take some solace from the country’s footballers, who despite rough treatment eventually emerged victorious.