Bank hopes to eliminate the new tax on the sector | Economie

The chaos between the government and the bank does not stop. After months of negotiations to implement an agreement that helps those with problem mortgages, which had white smoke last week and to which the entities are already committed, the rough lines remain. Mainly on the side of the extraordinary tax on the financial sector, which has already received the green light from Congress and only needs the approval of the Senate. A rate directly opposed by banks due to its negative effects on the economy. Among those responsible for each entity, Bankinter CEO Maria Dolores d’Ancoza has been vocal about whether they will appeal the foreclosure. “We will do it the day after we pay it off,” he said on Monday at a financial forum organized in Madrid.

The organizational change schedule has been very tight since July. It was then that the CEO announced, all of a sudden, the proposal to impose a new exceptional tax on energy companies and banks. The entities as a whole assert that this rate is not justified and will have a negative impact on the economy. “A tax is imposed on a certain sector only when you want to restrict an activity,” BBVA CEO Onur Genç recalled during his participation in the KPMG Finance and Finance meeting. expansion, where he said the bank would analyze if he appealed. Like Gonzalo Gortázar, CEO of CaixaBank (of which the state owns 16%): “If we think it does not comply with the law, we will have to appeal it.” In the same vein, Antonio Simoes, CEO of Banco Santander in Spain stated: “It seems to us to be a wrong measure, it is not the best way to fight inflation. The sector as a whole will be able to finance 50,000 million euros less for this extra cost.”

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The first swords of the entities that passed through the forum reiterated that they are waiting for the final text to decide whether to appeal the payment of taxes. Ibercaja CEO Victor Iglesias offered that it was “very likely” that his entity would do so: “The courts will agree with us.” The tax, which has already been passed through Congress, expects to raise 3,000 million within two years by applying a rate of 4.8% to the net interest and commission margin of banks for their business in Spain for those exceeding 800 million between both figures, as well as foreign entities operating in the country and subject to For the direct supervision of the European Central Bank (ECB). The amended executive is justified by the need to obtain an additional contribution From the financial sector, considering that it will benefit from higher interest rates, which, had it not been for inflationary pressures, would have occurred gradually.

Another issue that was highlighted during the financial meeting was the criticism that reached the rate of international organizations. For example, the European Central Bank called for a comprehensive analysis before it went into effect and emphasized that this cost should be passed on to customers, as stated in the recommendations of the European Banking Authority (EBA). However, at this point, the executive branch has inserted its prohibition into the motion. “The bill states that the tax cannot be passed on to customers and the EBA guidelines recommend that all costs, including taxes, be included in credit rates. How do we banks handle this?” asked Cesar González Bueno, CEO of Sabadell. These differences, according to Sabadell’s chief executive, are the result of the haste with which the tax was designed: “They didn’t have the calmness that any regulation should have.” Something the president of the Spanish Banking Association (AEB), Alejandra Kindlan, has had an impact on.

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More provisions for mortgage assistance

Another major topic discussed during the financial meeting was helping mortgaged people who are in trouble. A broad package of measures approved by the Council of Ministers, on Tuesday, consists of updating the code of good practices and creating an alternative income mechanism of up to 29,400 euros. Government and bank projections suggest this could benefit close to a million customers, although consumer associations reduce these estimates. “The important thing is that families have this social shield available in case they want to pull it off if they are in trouble,” according to administration sources.

The banks, a week after the conclusion of the negotiations and while studying the entities of the plan for their accession (they have already done so, for example, CaixaBank, Sabadell and Unicaja), considered it very important to reach the point of equilibrium, as also indicated by Pablo Hernandez de Cos, Governor Bank of Spain. The big problem, in the opinion of the sector, is the increase in endowments due to the potential non-payment that it can cause. “It will make a big impact on the provisions, but the priority is to help our customers,” Simões recalls, from Santander.

This particular point was among those responsible for delaying the negotiations. Economics has attempted to resolve this indecision by including a guarantee that prevents all refinancing forcing customers to automatically become suspicious. Thus, both for the exception added in the Code of Good Practice, and for the new mechanism, it has been included that the portion of the unamortised loan will not accrue interest at a rate such that it would mean a reduction of 0.5% to the NPV of the loan. Anything less than the limit by which credits will be automatically reclassified.

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On the other hand, José Manuel Campa, President of the European Banking Authority (EBA), indicated that there is concern about the macroeconomic deterioration and that there is a part of the assets at risk: “We still believe that the Covid-19 crisis was not entirely temporary and that there is a certain set of assets The defect that must be managed in the medium and long term, which could be a delay in payment in the banking sector.

In terms of assistance, banks also assure that they will go further after studying each case with customers who need it. “We will go further and apply it to more people or different people [de lo que recogen los protocolos aprobados]Of course, he again mentioned, like his counterpart at CaixaBank, that at the moment there is no recovery in non-performing loans, which are still less than 4% according to the Bank of Spain, at historically low levels. Francisco warned Urrea, KPMG’s global partner in charge of banking, said this would inevitably change in the coming quarters, though he highlighted the good position the entities are in: “Banks face what’s coming in a position of great strength in terms of capital, liquidity and balance sheet quality.” General.

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