EU overvalued the liquidity of Popular Bank in € 1,887 million

The Single Resolution Board (JUR) has eliminated part of the censorship order that weighed on the Banco Popular 2016 Resolution Plan and the Assessment Report 1, thus transferring an order resolved by the Resources Panel of the same body. The plan shows that different European organizations overvalued the bank’s liquidity by 1,887 million in case of resolution.

After holding a hearing last June on access to documents related to Banco Popular, the JUR Resources Panel ordered that new information be declassified. This decision was motivated after the allegation presented by the law firm B. Cremades & Asociados, which assured that the JUR skipped compliance with the document disclosure order of June 19, 2018.

Among the most relevat information made public there is one concerning the calculations made by the European organizations on a potential leakage of deposits, since they estimated that the bank would not have problems maintaining an excess of liquidity of 1,887 million euros in case of resolution, as advanced ‘El Confidencial’

At the same time, there is the leakage of 8% of the deposits of the individual clients, of 12% by small and medium-sized companies, as well as the exit of 50% by large companies, of 40% of the public administrations and the 100% of the money of other financial entities.

The jurisprudence of the European Court of Justice (CJEU) has indicated that whoever requests to eliminate censorship is responsible for demonstrating that this public interest really exists above that referred to.

Source: dpa