Spanish banks on paper remain firmly committed to their Latin businesses - their best hope for future profits. But their troubles at home could yet force them into a radical restructuring.
Most market watchers see the model of Spanish parent with semi-independent and profitable Latin subsidiaries as an eminently viable business model.
The argument is not hard to grasp: high profits from Latin America would bolster consolidated results and allow conservatively managed Spanish giants to meet tough provisioning and reserve requirements at home.
This is the start of an article on the future of Spanish banks in Latin America given the economic crisis at home. To see the full article, please go to the Latin Finance website (www.latinfinance.com).