Post by account_disabled on Jan 17, 2024 4:30:35 GMT
If we add to the known ills of the sector the expected increase in provisions for possible defaults derived from the pandemic, a more robust balance sheet guarantees greater resilience and future viability. Personally, I think that we will soon see some more movement in Spain. The fact that the ECB relaxed, before the summer, the solvency requirements in the event of a merger, confirms that the field is ripe for sowing new operations. But stopping only at this type of defensive movements as a response to the current competitive landscape would be a mistake. Banking has to define a strategy to overcome the threat of new competitors, which not only make a dent in consumer or business loans but also offer customers new forms of relationships.
Regarding the market situation, the governor of the Bank of Spain declared, at the beginning of the month, that in Spain there is still room for greater consolidation without the risk of incurring an oligopoly situation, because the bank has other competitors that, little by little, little, they are taking part. In my opinion, the problem is that until these new actors have sufficient size, the inevitable concentration process can create situations of financial exclusion in companies with unattractive profiles for increasingly larger banks. Francisco Duato Vayá, Treasurer and Whatsapp Number List co-president of the Financial Commission of the Association of Economists of Valencia. The possible merger has many angles from which to see advantages or disadvantages but, to paraphrase Paul Samuelson, one sees the problems depending on the color of the lenses of their glasses. At first glance, the operation, in the form of a merger, seems more like an acquisition of Bankia by Caixabank.
We still do not know how it will be structured, but the fact that it is done through a merger by absorption or through the creation of a new entity has different review mechanisms by regulators. The State's stake in Bankia is 61% and given that Caixabank's share price triples that of Bankia, the public coffers could see their stake reduced to 14%, albeit in a stronger bank. The greater or lesser success in the integration will determine the reimbursement of the public aid that made the State a shareholder of Bankia. On September 4, we learned about the negotiations between both entities and since then the market has given its approval. That day Bankia's price rose by 33% compared to Caixabank's 12% and today the prices remain at same levels.
Regarding the market situation, the governor of the Bank of Spain declared, at the beginning of the month, that in Spain there is still room for greater consolidation without the risk of incurring an oligopoly situation, because the bank has other competitors that, little by little, little, they are taking part. In my opinion, the problem is that until these new actors have sufficient size, the inevitable concentration process can create situations of financial exclusion in companies with unattractive profiles for increasingly larger banks. Francisco Duato Vayá, Treasurer and Whatsapp Number List co-president of the Financial Commission of the Association of Economists of Valencia. The possible merger has many angles from which to see advantages or disadvantages but, to paraphrase Paul Samuelson, one sees the problems depending on the color of the lenses of their glasses. At first glance, the operation, in the form of a merger, seems more like an acquisition of Bankia by Caixabank.
We still do not know how it will be structured, but the fact that it is done through a merger by absorption or through the creation of a new entity has different review mechanisms by regulators. The State's stake in Bankia is 61% and given that Caixabank's share price triples that of Bankia, the public coffers could see their stake reduced to 14%, albeit in a stronger bank. The greater or lesser success in the integration will determine the reimbursement of the public aid that made the State a shareholder of Bankia. On September 4, we learned about the negotiations between both entities and since then the market has given its approval. That day Bankia's price rose by 33% compared to Caixabank's 12% and today the prices remain at same levels.