Banco Espirito Santo believes its capital buffers will protect it from any losses incurred by exposure to its parent group. The statement was announced to quell concerns from investors and the market after a rocky last few days, which lead to the trading suspension of both Banco Espirito Santo and Espirito Santo Financial Group (ESFHF).
Issues came to a head this week when debt repayments to clients on commercial paper issued by parent company Espirito Santo International were postponed. Concerns are still being expressed over the bank's financial stability and complex structure of its parent company.
Banco Espirito Santo's market value has almost halved since May.