Spanish banks' "bad loans" hit seven-month high

The Spanish central bank has said the level of “bad loans” on banks' balance sheets in June hit levels not seen since November 2012 (release).

The Banco de Espana said loans to debtors with a high chance of default increased by 0.1 per cent month-on-month to €176.4bn (£150.5bn) in June.

This brought the bad loans ratio to a record high of 11.61 per cent, up from 11.21 per cent in May.

Year-on-year, bad loans were up 4.8 per cent.