In a recent visit to the Spanish parliament, Miguel Martín, the President of Spain’s Banking Association (AEB) confirmed that financial institutions are turning into the country’s biggest property companies, whilst trying to dump their stock of homes with discounts of 20% or more.

Appearing before the Economy and Treasury Committee, Martín said that the banks will have to “assume the responsibility for their bad loans,” and that “now that we are trying to sell flats by reducing prices, we are turning into the biggest property companies.”

Whilst admitting that default rates are rising, Martín said that there was no need for the banks to run scared or try and hide it.