Spanish Banks...strong assets. The secret?

American bankers should give Spain the nod.

After all, so far - they've come through the financial crunch - unscathed.

"From the point of view of financial stability, the Spanish institutions have shown greater resistance capacity than in many other countries," Bank of Spain Governor - Miguel Fernandez Ordonez - proudly noted this past week.

However, Ordonez was quick to point out that bank income would drop as the collapse of a domestic housing boom and the global crisis slammed Spain's economy, which is heavily dependent on foreign financing.

Consumer spending has taken a dive as the number of people out of work in Spain hit an eleven-year high of 2.6 million in September.

Ordonez also added that Spain could suffer its first negative economic growth in fifteen years during the fall/winter season of 2008 and expansion could be lower than the government's forecast of one percent in 2009.

In spite of this, the government forecasts a rebound in the second half of 2009.

Spain's two biggest Financial Institutions - Santander and BBVA BBVA.MC&gt - have so far continued on strong legs.

On National Public Radio this morning, it was pointed out that one fourth generation banker in Spain managed to build assets at his financial institution in the past decade or two - and thus - was able to remain relatively calm and secure throughout the banking crisis in recent days.

What was the secret of his bank's success?

In a clipped no-nonsense style he revealed his motto which made a lot of fiscal sense.

"If you don't know the financial product, don't buy it," he warned to anyone within earshot.

On a parting note, he offered up additional sound advice.

"If you don't know the person, don't do business with them."