Now BBVA Is Facing Credit Market Problems As The Spanish Banking Crisis Expands

The Spanish banking crisis is starting to spread from the country’s regional banks to its national, as the full extent of the system’s problems have yet to be exposed.

BBVA is the latest bank to show stress, being unable to access $1 billion in short term credit from the U.S. commercial paper market, according to the Wall Street Journal (via Zero Hedge).

While BBVA still has access to another $9 billion in commercial paper, it is still another sign of rising stress levels in interbank lending associated with Spain.

BBVA stock is showing signs of the stress:

BBVA 526

Santander would be the next likely target for worry, though there is some belief that it is not too exposed to the Spanish domestic lending market.

Check out why Spain’s crisis starts at the banks and has a long way to go >

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