Regrets that following the financial crisis “has regulated what was already regulated and unregulated what no regulation”
BILBAO, 22 (EUROPA PRESS)
The president of Bankia, Jose Ignacio Goirigolzarri, said that the company has “improved a lot” but has “great challenges ahead” as improve efficiency and increase revenue with an increase credits. In this sense, it has advanced to the organization granted 5,520 million euros in loans to companies and households until April, 41% more than in the same period of 2014.
Goirigozarri participated Friday in Bilbao Deusto Business Alumni meeting held at the University of Deusto, in collaboration with PwC, where he gave a lecture on ‘The adaptation of the Spanish financial system to the new environment. The experience of Bankia ‘.
The president of Bankia considers that the Spanish financial sector has made “the bulk of the adjustment” and has “a reasonable structure” for the current economic times, although there are still “big challenges “. In this line, it has also warned that after the global financial crisis “are regulating what was already regulated” and yet, “six years later, what unregulated there is no regulation.”
his lecture, Goirigolzarri stressed that the situation of the Spanish financial system has improved, after making “a very important transformation effort” in size, going from 56-16 entities, such as sanitation, “charging against their income statements 280,000 million euros, 28% of Spanish GDP “, and capitalization, an increase of 100,000 million euros.
THE ADJUSTMENT OF INDUSTRY WILL CONTINUE
This transformation has added, has done with “a great sacrifice” because, in the crisis years have closed “one in three offices” and staffing industry has been reduced “almost 70,000 people.”
Although “the bulk of the adjustment has already been done”, he opined that “will continue in the coming years.” The president of Bankia has indicated that this “conversion” was “much more radical and faster” than in other countries and has left “a well-capitalized and well provisioned powerful system.”
However, it has considered that “great challenges ahead”, among which he highlighted the need to recover “reputation” of a sector “key” to economic growth and improve profitability, persist because “the return on equity, now in the 4% 5% environment is far from 20% before the crisis and well below the cost of capital “with European banks.
In his view, the current structure of the Spanish banking sector is “reasonable” for the current economic times, although it has specified that predict whether “it will last a lifetime” depends on “many factors such as the evolution of the Spanish economy and the situation of the financial system.
RIGIDITY OF SCHEDULE threat to employment
It has also been referred to the need for “flexible hours” in the sector, “the one that matches” working hours to trade, to meet demand the clients. As warned, if there are “more efficient competitors, we are no longer discussing scheduling” but “jobs”.
With regard to the specific situation of Bankia, its president has stressed that it has improved “a lot” but has “great challenges ahead”. In this regard, he indicated that, two and a half years after the implementation of its restructuring plan, Bankia is “a solvent bank, well provisioned and well capitalized”.
Among the main objectives facing the company, which aims to reach the end of the year a return on equity of 10%, it stressed the need to increase customer revenue, which “is to increase loan portfolios and, very specifically targeted small and medium enterprises “.
As explained last year this type of credit was around 12,000 million euros in the first four months of 2015 turnover increased credit is being” very remarkable. ” Depending on the data provided by the company, in the first four months of the year, awarded 5,520 million euros in loans to businesses and households, an increase of 41% over last year in Spain and 66% taking into account only the Basque Country.
Goirigolzarri has also decided to improve the efficiency of Bankia by “mega doses of innovation” and “maintain the mental transformation team” that “will translate into results”.
THE UNION BANK NOT ENOUGH
On the other hand, the president of Bankia has analyzed the impact on the sector of the measures taken at the international level and, in this regard, considered that the driven banking union in Europe “is not enough” and would be “good” to also have “a unique treasure or a single fiscal policy.” However, he has chosen to be “pragmatic” and “fight for achievable objectives in the short or medium term.”
Likewise, he warned that the regulation in the sector is taking on “the which it was already regulated. ” In this regard, he noted that one of the reasons for the financial crisis was the so-called ‘regulatory arbitrage’, with the existence of not subject to banking regulation companies – “shadow banks” – so that when “exploiting” the situation makes “first deregulated sectors and then affecting the regulated sectors.”
“Six years later, we are regulating what was already regulated. And what was not regulated and not There is no regulation, “insisted Jose Ignacio Goirigolzarri.
In this line, considered that” certain “that can produce new” bubbles in the future “because” human beings make mistakes out permanently. “
reducing unemployment and correct imbalances
The president of Bankia has analyzed, on the other hand, the Spanish economic situation, with “positive outlook” result of the “great sacrifices” that have performed. In any case, he warned that “keep that picture is dangerous” because the country has “extremely demanding challenges” such as reducing unemployment and correcting external imbalances.
Goirigolzarri noted that to reduce unemployment requires a cycle of steady economic growth and warned that the Spanish economy is being driven by “two elements which are two strong tail winds”, such as oil prices and developments in the euro, which It is attributed “a third of GDP growth this year”.
It has also warned of the need to address the “unfinished business” of training and employability of human capital.
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