Financial Times FT.com

Housing slump will hurt Spain, say bankers

By Victor Mallet in Madrid

Published: October 3 2008 03:00 | Last updated: October 3 2008 03:00

Spain's banks may have been spared a direct hit from the hurricane sweeping through the world's financial systems, but bankers in Madrid predict that the country will still succumb to a conventional banking crisis over the next two years because of the collapse of its housing market.

In the past two weeks of turmoil, Spanish banks have appeared remarkably robust compared to their rivals in the US, the UK and continental Europe.

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