LISBON, July 10 Banco Espirito Santo (BES)
, Portugal's largest listed bank by assets, has
sufficiently large capital buffers to deal with potential debt
defaults by companies belonging to the bank's founding family, a
source familiar with the situation said on Thursday.
"BES' capital cushion allows it to absorb any possible
defaults by the Espirito Santo Group without putting at risk the
capital ratios demanded," the source told Reuters, adding it was
based on information available to regulators that has been
audited by KPMG.
Shares in BES plunged 17 percent on Thursday on investor
fears that it will be hit by the financial troubles of the
Espirito Santo Group - the holding companies of the Espirito
Santo family that founded BES.
(Reporting By Sergio Goncalves, writing by Axel Bugge)