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Spanish banks need up to €62 billion: auditors

MADRID (MarketWatch) -- Eagerly anticipated stress tests of Spanish banks carried out by two independent auditors showed aggregate capital needs for financial institutions in an adverse scenario of between €51.8 billion and €62 billion ($65.7 billion and $78.7 billion). The audits were carried out by consulting firms Oliver Wyman and Roland Berger. Under a baseline scenario, which the Bank of Spain's deputy governor described as most probable, the auditors pegged recapitalization needs for the banks at €16 billion to €25 billion, according to U.S.-based Oliver Wyman, and €25.6 billion in the view of German firm Roland Berger. The audits show Spanish bank capital needs that come in well below the up to €100 billion in loans the Spanish government said earlier this month it would seek from the European Union for the sector. Officials reportedly said a formal request for that loan would come within days. (Updated to include baseline-scenario figure from Roland Berger.)