Comments from the Banco de Espana
– Spanish bank’s profitability is a risk factor
Details from their latest financial stability review.
I’m not sure what they expect really. Banks have been given a huge slap on the wrist and told to scale down risk operations, while stocking up on reserves to weather any future blow outs. Now they’ve all moved to more conventional banking operations, everyone is moaning that low rates aren’t very profitable for banks.