"Big Four" chosen to audit Spanish banking sector

  • Spain has appointed the "Big Four" accounting firms KPMG, PwC, Deloitte and Ernst & Young to carry out a full audit of its ailing banking sector.

    The review, according to a unnamed source with knowledge on the matter, will follow an ongoing stress test by consultants Oliver Wyman and Roland Berger, the results of which are due to be released later this month.

    Spain's Prime Minister Mariano Rajoy has said his government will have a clearer picture of the amount of money required to recapitalize the troubled sector by the end of June.

    The European Stability Mechanism (ESM), due to come into force on July 1, will be able to lend money to banks but the request will need to be made by the state, which would receive the money and then transfer it to the lenders.