The Bank of Spain calls for new mergers {http://bit.ly/1Gaa6Ri}
The Deputy Governor of the Bank of Spain claimed the Spanish financial sector Friday to address a new mergers to benefit from economies of scale. Although he did not mention the average banking everything indicates that the message was addressed to a specific target in the speech. The fact that claims these operations to "better exploit economies of scale" suggest that their partners are the medium-sized banks.
Restoy said that "although the degree of consolidation of the industry has increased significantly in recent years loos, could still exist in Spain a couple margin execution of corporate transactions that generate value to the shareholders of the companies involved and to strengthen the efficiency of assembly banking sector. " In this context, it also recommended cross-border mergers, taking the banking union.
The deputy governor said "I just hope that the personalities have the least importance and eventually act for the benefit of shareholders and the financial system". The Spanish financial sector has shrunk considerably in recent years, so that even the president of the CNMC, said his agency was watching the process of concentration in the sector in Spain. Nevertheless, experts say that there is room for more connections, which could occur around 2016. Restoy, however, he said that "it is not a message for anyone, but we can not ignore the possibility of gaining efficiency", to Through these mergers.
Restoy, who closed a course organized by the International University Menéndez Pelayo (UIMP) in collaboration with the Association of Economic Journalists (FIPA) and sponsored by BBVA, these operations also framed in an environment of low interest rates with high pressure bank margins and profitability far from existing before the crisis, it was double digit, compared to 6.5% today. And although it is higher than in other countries in Europe adviritió that "there is no room for complacency on the part of the Spanish banks." To add to what sounded like a slap widespread ears "uan important part of the profits earned by the banking sector last year derived from non-recurring financial transactions" (capital gains).
Restoy and reeled strategic "adjustments" to restore sustainable levels of profitability to ensure the "viability" of the banking business in the medium term. It recommended in context ege reduce costs and gain efficiency by reducing branches leveraging the development of new technologies. Yes, "unchanged in substance" proximity effect model that has been "successful".
The supervisor took the opportunity to make a defense of the committees, by picking generate value in providing transactional services or management in the current context, which can be "directly paid" with the corresponding commissions. "It was necessary that operators most directly affected by low interest rates, and financial institutions, as necessary adjust their business strategies to adapt to the new economic environment," he said.
The deputy governor noted the steps the ECB to revive the economy and credit flows, among which is to maintain historically low rates inteerés. 2The ECB measures have been efectivoas to contain the risk that the euro zone could plunge into a state of prolonged economic weakness.
Nevertheless, he warned that a prolonged period of time with types of "extremely low interest rates may generate some adverse effects. Although still considered far these effects are of concern to our economy, we should ensure that we have the precise economic policy tools, such as macroprudential policy ". And banva warned that "adjust, as necessary, their business strategies to adapt to the new economic environment."
