Trading suspended in Spain’s Banco de Valencia
The Spanish regulator, Comisión Nacional del Mercado de Valores (CNMV), has provisionally suspended trading in shares of Banco de Valencia, the troubled regional bank which is estimated to face a financial gap of €600m.
The regulator said it decided to suspend trading “with immediate effect”, before the Spanish stock market opened.
The CNMV said the suspension was due to “circumstances that could disrupt normal trading,” but did not say when the suspension was likely to be lifted. The bank’s shares closed on Friday at €0,87, down 1.87%.
The regional bank based in Valenci’s provincial capital Turia, is considered one of Spain’s weakest financial institutions and it has aroused takeover interest in recent months. The Banco de Valencia is part of the Bankia group, the country’s large savings bank group, and a few days ago, its president, José Luis Olivas resigned over potential conflicts of interest due to his position on Bankia’s management board.
The bank’s capital ratio stands at 7.36%, well below the 9.0% required under new European Union capital requirement rules. The Bank of Spain recently instructed the bank to set out a recapitalization and restructuring plan by the end of the year.