The central bank of Spain has announced that the recapitalization process of the country's banking system is about to finish. A majority of banks in Spain have touched a Core Tier 1, between 8% and 10%, specified a Spokesperson.

Under the spell of country's law, majority of entitled banks as well as those where private creditors hold a stake of not less than 20% are directed to have a Core Tier 1, 8% or 10%, in case private investments are far away from their reach.

On Tuesday, while attending a presentation in London, the Director General of Banking Regulation in Bank of Spain, José Maria Roldan, said: "In both cases, we expect further corrections in the years to come". Further, he added that the land prices in Spain have faced a roll down of around 30% as compared to the figures of 2007, when the prices were observed at peak.

According to the recently released figures by the central bank, most probably by the mid of year around 17% of Spanish banks will loan to various construction companies. The market scenario is likely to upset the player in real estate.