Banco PopularEspañol SA said it is studying various options to significantlyreduce the level of unproductive assets in its balance sheet from 2016 to 2018.

Among the options being considered is the creation of avehicle that would consolidate a portion of the unproductive assets, althoughthe bank noted that such a vehicle's structure or size has not yet been set.Banco Popular said, however, that the impact of setting up the vehicle would besignificant and is estimated to amount to a gross amount of at least €4billion.     

The lender said it will provide the market with additionalinformation if it decides to push through with the vehicle option.