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Banks ask for patience with deposits and rule out improvements due to political pressure

Date: June 18, 2024 Time: 23:55:57

The delay in the remuneration of deposits threatens to become a dispute between the Government and the banks. The CEO of Banco Sabadell, César González-Bueno, has assured that the remuneration “will arrive not because she says so (in reference to the First Vice President and Minister of Economy and Digital Transformation, Nadia Calviño) but because of competence”.

With these words the banker has sent a clear message to the Government. In these same courses, the Minister of Economy, Nadia Calviño, urged financial institutions to transfer the rise in interest rates to the remuneration of deposits, and pointed out that on June 29 she will meet with the banking employers, CECA and AEB, to discuss various topics, among them, the payment of time deposits.

During his speech on the second day of the summer courses organized by the Menéndez Pelayo International University and APIE, the bank assured that “deposits are arriving and they are doing so progressively.” González-Bueno recognized that despite the fact that they are not modern products, they are in demand and explained that it is in the field of mortgages where they maintain “fierce” competition between entities.

In this sense, the manager has recorded that the average rate in April for new mortgages rose to 3.68% in April, compared to the Euribor, the reference index for variable-rate mortgages, which stood at 3.757% in April. “Assets have gone up a lot, because companies have been very much appreciated, but liabilities have been less”. González-Bueno demanded that the Government not focus only on fixed-term deposits, but that “it is necessary to have a more global vision of financial institutions.” To later add that “it is inexorable, this discussion is going to be outdated by the passage of time. The adjustments are not immediate.”

During his speech, the banker also launched two other messages. One that “it is not advisable to reduce the number of banks, we are more concentrated than in Europe and that would affect competition”, (to which so many have been referred) and another that there are products that are better for the client and for the bank, such as insured funds or savings insurance, with returns that are above 2%.

During his speech, he also repeated the mantra on which the sector relies to avoid transferring the rise in interest rates to these savings products: the excessive liquidity of the system. “One of the advantages of the Spanish financial system is that it is healthy and this has produced an excessive deleveraging of families and companies, which has led to a very abundant liquidity situation in banks.”

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Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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