The Sareb Management Society of assets from bank restructuring, Spanish will be the bad bank.

The Government and the Bank of Spain, allow the creation of bad bank, but it is not clear that this reactive granting short-term credits.

The bad bank

Currently, after nearly five years of crisis, Spanish banks have not gotten rid of their toxic assets. The bad bank will absorb them, is a financial institution public or semi-public for making clean, to the economic and financial system over-valued assets will sell to save their balance sheets. But how banks have acquired these assets?, Creating investment funds that have no value, from mortgages awarded to people with little financial solvency.

Sub prime mortgages

In the United States was launched in the years before the crisis, a type of mortgage-based lending modality with a high risk of default, in exchange for paying higher interest than those charged to persons solvents. A priori, it seems reasonable economic management, if an individual is not able to return an average interest seems unlikely to do so incrementally, depending on their type insolvency. this mortgages were sold to third parties in return for less interest to secure an immediate recovery, but as they could buy other types of markets, even if not financial, risk is spread throughout the industry both internally and externally, jeopardizing the global system.


The credit recovery

However, nothing suggests that banks give loans again in the short term. If it is true that Spanish banks with major problems can receive EU aid, but in return the European Central Bank to impose a regulation across the sector, including the part of this that is causing healthy distrust. The economic recession is a fact, household debt and corporate cause a downward demand and contribute to skepticism. Experts warn that not restart lending, at least two or three years and in that lapse of time, companies will have no choice but to raise capital, assuming that those entrepreneurs who have it, are willing.

The management of the Spanish real estate crisis

If the bad bank to purchase toxic assets and real current price the banks, but will lose value out of their balance sheets and have regained some of its value. If the acquisition is made ​​on the price at which mortgages were awarded, recover more value entities but toxic assets have been moved from one place to another and the State will have to answer them. Another thing is what you intend to do with these homes, once they are managed by the bad bank. If offered for sale at a real, hurt the battered real estate market and reduce the financial resources of some families, if dedicated or integrated social rents in the market for subsidized housing (VPO), can be a very feasible solution.