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Showing posts from May, 2015

BANKING INDUSTRY IS THE PORTUGAL'S BIGGEST REAL ESTATE AGENCY

By the end of 2014, the Portuguese banking industry had for sale, in its portfolio, real estate assets in the amount of about eight billion Euros, which corresponds to 1,9% of the total assets.

However, if we analyze the numbers before the crisis, we are able to understand that the current value is excessive. By the end of 2007, banking real estate assets corresponded approximately to 800 million Euros, 0,2% of the total assets.

These data are provided from the Financial Stability Report of May 2015 of the Bank of Portugal. Bank of Portugal also alerts to banks high risk exposure to the real estate sector.