LISBON: Portuguese banks have to boost their capital and increase their profitability, Bank of Portugal governor Carlos Costa said on Wednesday.
“Portuguese banks have to ensure that they have sutainable profitability,” Costa told a conference. “Capital has to be reinforced to guarantee sufficient cover for risks that may come.”
He was speaking after Portugal had to pay more than 2.2 billion euros last month to rescue Madeira-based bank Banif in an operation that included the sale of the bank’s healthy assets to Spain’s Santander.
