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Spain banks get 41 bln eur capital boost from tax rule tweaks
May 8, 2014 / 11:37 AM / 4 years ago

Spain banks get 41 bln eur capital boost from tax rule tweaks

MADRID, May 8 (Reuters) - Spanish banks got a bigger capital boost than previously announced from a change in the treatment of their so-called deferred tax assets (DTAs), which under new global banking rules are discounted from capital bases.

The lenders can convert 40.8 billion euros ($57 billion) out of the 68 billion euros in net DTAS they had at the end of 2013 into state-backed tax credits, which will help them preserve them as capital, the Bank of Spain said in a report on Thursday.

The government tweaked the rules on DTAs last year to help lenders which had accumulated these assets after taking losses on soured property deals in 2012. It had said in November banks would get a 30-billion-euro boost from the changes. ($1 = 0.7183 Euros) (Reporting by Jesus Aguado, Writing by Sarah White; Editing by Julien Toyer)

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