MADRID - Sabadell Bank will allocate tens of millions of euros in provisions to address the financial impact of the recent catastrophic floods in eastern Spain, according to CFO Sergio Palavecino. This statement was made during a financial event in London.
The Bank of Spain has indicated that the floods are expected to reduce economic activity by 0.2 percentage points in the fourth quarter. Palavecino noted that while the impact will not be negligible, it remains manageable.
Spanish banks hold over 20 billion euros in loans in the regions most affected by the floods. However, Bank of Spain Governor Jose Luis Escriva assured that the banking sector is equipped to absorb the financial shock. Additionally, Caixabank's CEO Gonzalo Gortazar has anticipated an increase in bad loans as a result of the flooding.