* Spain banks solvency verified by stress tests-Santander
* Santander best rated so far in Europe tests-govt source
(Adds details on Santander ranking, analyst comment)
SANTANDER, Spain, June 17 Bank of Spain stress
tests to determine banks' capital strength will come out
positive for most Spanish banks, the deputy chairman of Spain's
largest bank, Santander (SAN.MC), said on Thursday.
"I'm absolutely convinced that the stress tests will show
the strength of the majority of Spain's financial entities,"
Matias Rodriguez Inciarte said at a conference.
His comments came before a government source told Reuters
that Santander has the best rating so far in European bank
stress tests. [ID:nLDE65G1M6]
The Bank of Spain said on Wednesday it would publish stress
tests on individual Spanish banks to verify whether they have
enough capital to withstand economic downturns.
Inciarte also said he believed European-wide stress tests
would show the strength of the European banking system and help
Mauro Guillen, head of the Lauder Institute at the Wharton
School speaking in Santander, said he was not surprised at how
well rated Santander was, but suggested others were perhaps not
in such a strong position.
"It's not surprising they are number one ... but there are
some banks, and in particular some of the savings banks, that
are not so solid."
However, he noted that the Spanish banking system was
The country's 45 largely unlisted savings banks with
excessive exposure to the property sector slump are immersed in
a government-driven restructuring process to clean up their
balance sheets and halve their numbers.
(Reporting by Nigel Davies; Editing by Jon Loades-Carter)