Post by account_disabled on Jan 16, 2024 23:30:25 GMT -5
The foreseeable merger of Bankia and Caixabank would result in the largest banking entity in Spain with total assets exceeding 650,000 million, with nearly 7,000 branches and more than 50,000 employees. Both banks have their headquarters in the Valencian Community where it is expected that the registered office of the new resulting entity will be maintained. We talked about what the merger of both financial entities will mean for the region with Francisco Duato, Treasurer and co-president of the Financial Commission of the College of Economists of Valencia. -What does the merger between both entities mean for the Valencian Community.
How will the banking scenario of the Community be drawn? -If the merger finally takes place, the Valencian Community would be the headquarters of the largest bank in Spain with approximately 650,000 million assets (25% of the total deposit institutions in our country), 6,700 branches (28%) and 51,500 employees (29%). Its market share would be around 25%, compared to 20% for Santander or 15% for Whatsapp Number List BBVA. After the merger, the Valencian Community would host the headquarters of two banks (Bankia-Caixa and Sabadell), Caixa Popular and Caixa Ontinyent, in addition to the rural savings banks. -What would it mean if the new entity resulting from the union between Bankia and Caixabank decided to settle in the Community? And if not, how would the departure of the headquarters of both banks have an impact? -Basically it would mean a very important new reputational boost.
The choice of the Valencian Community as the headquarters of the new entity would reaffirm the image of a safe and credible region for the establishment of top-level companies. Taking into account that both companies are already domiciled in the Community, I do not consider any other scenario other than the permanence of the resulting entity. -Some entities and political figures have expressed concern about this operation due to the loss of competition and excessive banking concentration. What do you think about it? Do you think there are reasons for concern or are the advantages greater? The sector basically suffers from three problems: low profitability on capital, excess capacity and growing competition that comes from outside the banking perimeter. The low profitability of the sector is not new and is worrying. The cost of capital of a bank is usually estimated at around 10% and if we look at the latest estimates, the ECB has estimated that the average ROE in 2020 will be 2% and 3% in 2021.
How will the banking scenario of the Community be drawn? -If the merger finally takes place, the Valencian Community would be the headquarters of the largest bank in Spain with approximately 650,000 million assets (25% of the total deposit institutions in our country), 6,700 branches (28%) and 51,500 employees (29%). Its market share would be around 25%, compared to 20% for Santander or 15% for Whatsapp Number List BBVA. After the merger, the Valencian Community would host the headquarters of two banks (Bankia-Caixa and Sabadell), Caixa Popular and Caixa Ontinyent, in addition to the rural savings banks. -What would it mean if the new entity resulting from the union between Bankia and Caixabank decided to settle in the Community? And if not, how would the departure of the headquarters of both banks have an impact? -Basically it would mean a very important new reputational boost.
The choice of the Valencian Community as the headquarters of the new entity would reaffirm the image of a safe and credible region for the establishment of top-level companies. Taking into account that both companies are already domiciled in the Community, I do not consider any other scenario other than the permanence of the resulting entity. -Some entities and political figures have expressed concern about this operation due to the loss of competition and excessive banking concentration. What do you think about it? Do you think there are reasons for concern or are the advantages greater? The sector basically suffers from three problems: low profitability on capital, excess capacity and growing competition that comes from outside the banking perimeter. The low profitability of the sector is not new and is worrying. The cost of capital of a bank is usually estimated at around 10% and if we look at the latest estimates, the ECB has estimated that the average ROE in 2020 will be 2% and 3% in 2021.