Problems in the Chinese economy are mentioned, but these have been known for years. The low interest rate environment is alluded to, but the markets themselves have overreacted to a minimal US rate hike of just 0.25%! The profitability issues of banks are cited, and doubts about the solvency of bank balance sheets are invoked, based on the behavior of certain instruments, the CoCos, of relative importance. We are thus witnessing a new situation, a breakdown of historical correlations: the fall in oil prices should lead to stock market increases, instead of causing declines, and the same could be said for falling interest rates. What does this evolution tell us? Are we, perhaps, repeating what happened in 2007? No, not at all. Not, at least, from my point of view.
José María Roldán, President of the Spanish Banking Association
