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30 November 2010 By Fiona Maharg-Bravo

Investors are once again fretting about the scale of potential losses facing the country’s lenders. Improved disclosure and increased capital ratios might help to restore confidence. But the government doesn’t have the money readily available to deal with the problem.

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The Bank of Spain has asked the country's banks and savings banks to increase the transparency of their exposure to construction and real estate loans.

Lenders will have to give more detailed information by March 2011, Deputy Governor Javier Ariztegui said in a speech in Barcelona on Nov. 26.

Shares in listed Spanish banks have fallen sharply on worries over the industry, and over the government's ability to support it. Credit default swaps on Spanish sovereign debt widened 22 basis points to 373 basis points on Nov. 30, according to Markit.

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