Calvino is pressuring banks to pay more for deposits and provoking the sector
Government attack on banks to pay deposits. First Vice President and Minister for Economic Affairs Nadia Calvino pressed the sector to start paying commitments in a real and public way; Now only the Medium and Numeric Entities entered that war, while the Large Entities were still utterly resisting. He maintains that entities “must start” transferring higher interest rates to deposits, not just to credit.
A few words delivered at the opening of XL’s symposium Association of Economic Information Journalists (APIE) which are celebrated these days in Santander in association with BBVA and the Menendez Pelayo International University. “I have no doubt that the Spanish banking sector must begin to pass on higher interest rates to the citizens,” he said, referring to these products, which are traditionally in high demand in the Spanish market.
Similarly, the Vice President issued a notice that she will raise the issue in the next meeting that the Ministry of Economic Affairs will hold with the employers of banks, AEB and ECSC. The meeting was called for June 29, but the issues that will be discussed are the review of good practice codes signed by banks to help vulnerable and middle-class families, and financial inclusion measures. Paying for deposits is something that the vice president will put on the agenda “on his own”, as a measure of pressure on financial institutions.
BBVA President Carlos Torres also referred to paying for deposits in Spain. From his point of view, he stressed that it is “a dynamic situation, as long as this excess liquidity continues, the situation will continue, and when it is absorbed, the dynamics will change.” In addition, it denied that the decrease in remuneration for obligations was caused by a lack of competition; Thus, he indicated that this situation occurs because the entities are still flooded with liquidity and do not need to obtain deposits from customers.
industry response
The entities counter that each bank is independent in deciding its trade policy, in which the government should not get involved
More on a sectoral level, Nadia Calvino’s words didn’t sit well with the bank. The union argues that as long as there is plenty of liquidity in the system, it is neither possible nor necessary to attract deposits, for which the reward does not rise as high as would be expected after the rise in interest rates in Central Europe. Bank (ECB).
In this regard, the vice president’s banking sources mention that the government cannot and should not interfere in the commercial policy of private companies, in this case banks. “Each one decides the shape of his trade policy and, accordingly, whether or not to compensate deposits, and how much and when,” the sources in the sector indicate.
Banking sources also attribute Calvino’s statements to the need to restore pressure on financial institutions now that the elections are approaching. In fact, the relationship between this executive and banks is not going through its best moment since Government Imposing the new tax that is being appealed to the courts at the level of the employer and by all parties.
new tax
Likewise, Calvino advocated the new tax on banks in the sense that the sector has sufficient resources to meet it and thus contributes what the executive considers it should contribute to the public treasury. Even, the Vice President left the door open to make it a final, should they rule yet 23J.
Carlos Torres has also responded to the possibility of making the new franchise permanent, something he rejects outright as an injured party. He has argued that it would be “negative” for the entire economy, because it assumes another obstacle to the financial system that would harm the granting of credit.
