UH OH:

The Bank of Spain said Wednesday that bad loans held by the country's banks hit a new record in July, a sign of continued weakness in the industry despite a slight improvement in the country's economy.

Non-performing loans stood at 11.97% of total loans in July, up from 11.6% in June, which was already an all-time high. The previous peak was 11.4% reached in November--the last month before Spain's weakest lenders started to transfer bad loans to SAREB, a government-run "bad bank" currently in charge of managing those portfolios.