Spanish banks' bad loan ratio rises to 12.1 pct in August


MADRID, Oct 18 (Reuters) - Spanish banks' bad loans as apercentage of total lending rose slightly to 12.1 percent inAugust from 12 percent in July, marking a new high, Bank ofSpain data showed on Friday.

The ratio has been steadily climbing in recent months ashouseholds and small companies struggle with debts, although atsome banks bad debts grew more slowly in the second quarter.

Spain's economy is set to emerge from a two-year recessionby the end of this year, although many analysts and bankersforecast that bad loans will peak in early 2014.

Bad debts rose by just over 2 billion euros ($2.7 billion)to180.7 billion euros in August, the data showed.

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