[01] Salvador Climent Serrano, Department of Financial and Actuarial Economics, Faculty of Economics, University of Valencia, Valencia, Spain.

This paper studies the determinants that have affected the solvency of Spanish credit institutions. Six hypotheses with data from the annual accounts of credit institutions that ranges from 2004 to 2011 are contrasted. Econometric panel data models are used. The results show that the dependence on wholesale financial markets, the NPLs and provisions for impairment, contribute negatively to the solvency. The increase in: portfolio of assets, real estate investments, leverage, staff costs and administrative and interest margin and other income, serve to strengthen solvency.

Solvency Spanish Financial System, NPLs, TIER, Crisis

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