June 1, 2017 / 6:19 AM / in 2 months

BRIEF-Moody's maintains stable outlook on the Spanish banking system

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June 1 (Reuters) -

* Moody's maintains stable outlook on the Spanish banking system amid improving asset quality and steady profitability

* Moody's on Spanish banking system- Banks' funding, liquidity will remain stable in 2017-18

* Moody's on Spanish banking system- Expects banks' earnings to come under pressure over outlook period as low interest rates erode net interest margins

* Moody's on Spanish banking system- Bottom-line profitability of banks will likely remain stable due to the counterbalancing effect of lower provisions

* Moody's on Spanish banking system- Outlook reflects rating agency's expectation of continued reduction in problem loans and stable profitability in 2017-18 Source text : bit.ly/2rdKoOm

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