RIO DE JANEIRO, BRAZIL - The European Banking Authority (EBA) has completed its examination of the 131 main institutions it controls. It has determined that low profitability remains the sector's weakness (it stands at seven percent with a ten percent target) and calls for spending cuts.
In relation to the Spanish banking system, the EBA alerted about exposure to emerging economies such as Turkey, Brazil, and Mexico, which may be particularly vulnerable to trade tensions and fluctuations in interest rates on the dollar. Although the EBA, chaired by José Manuel Campa, former director of Santander, does not mention them, the . . .