MADRID, September 23 (Reuters) - Spanish banks are getting good marks in stress tests, the head of Spain's banking association (AEB) said on Wednesday.
European governments have been conducting stress tests following the U.S example, to provide more clarity on the extent of bank underfunding. But debate rages about the merits of publishing results.
AEB chairman Miguel Martin told a conference in Madrid he could not quantify results of the stress tests currently being completed in Europe.
"But what I can tell you is that the Spanish banks which have taken part have passed the tests with very good results," he added.
In June, the Spanish government created the Fund for Ordered Bank Restructuring (FROB), which is worth 9 billion euros ($13.30 billion) and may borrow up to 10 times that to prevent solvency problems in smaller banks damaging confidence in the system as a whole.
Up to now, no bank has drawn on the FROB.
Spain's larger banks such as Santander and BBVA have avoided serious problems from the economic crisis due to strict regulation and conservative policies toward lending during the country's decade-long property boom.
Many of the smaller of Spain's 46 largely unlisted savings banks have not been so prudent. (Reporting by Jesus Aguado; writing by Judy MacInnes; editing by Elaine Hardcastle)