And Now This: Auditor Says Big Spanish Regional Bank Needs A Buyer To Stay Afloat

caja de ahorros mediterraneo cam

The solvency of Caja de Ahorros del Mediterráneo (CAM) is in jeopardy without a buyer.

That’s the verdict of the bank’s auditor, KPMG, told of their “uncertainty about the capacity of the CAM group to continue its operations, in its ability to realise its assets and liquidate its liabilities,” as reported by

Nearly 51% of the bank’s loans to developers are now in default, while another 10.3% are at high risk of that fate.

The Bank of Spain has already intervened to keep the caja afloat, “temporarily [providing] the sovlency and liquidity necessary for [it] to continue operating normally.” It seized the bank in July.

KPMG said that the bank’s solvency will depend upon the Bank of Spain’s forthcoming plan to sell the bank. However, WSJ reports that this could be a difficult task, with few potentially buyers looking to take on the bank’s risky assets.

Spanish banks are some of the most troubled in Europe, with the most failing July stress tests conducted by the European Banking Authority of any country in the euro area.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.