The results of the stress tests, unveiled last Friday, were absolutely satisfying and are very positive for the financial sector, Spanish Finance Minister Elena Salgado said. Among the 91 banks tested across Europe, seven failed, of which five were Spanish banks.
According to an interview with the El Pais newspaper published on Wednesday, Salgado said the failed five Spanish banks account only for 2.3% of the country's financial system. Hence, she said their failure in the test to prove resilience against financial shocks is not a major concern.
All of Spain's major banks passed the stress tests conducted in July, but unlisted regional banks Banca Civica, Espiga, Cajasur, Diada and Unnim Savings Bank failed. They have a combined capital shortfall of about 2 billion euros.
Salgado assured customers of these institutions that their savings are safe. She also urged these banks to pick up their normal activity as early as possible and strengthen their capital within a reasonable time.
Further, the minister said Spanish unemployment most likely fell in the second quarter, though at a slower pace. The country's statistical office is due to release second quarter employment data on Friday. With regard to deficit reduction, Salgado said it is still difficult to understand why should one embark on deficit reduction even before the economy start growing and it still warrant further impulses.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.