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Calviño will meet with banks to demand an improvement in deposit rates

Date: June 19, 2024 Time: 13:27:08

“I have no doubt that the Spanish banking sector has to start transmitting the rise in interest rates to the benefit of Spaniards”, the First Vice President of the Government and Minister of Economy and Digital Transformation Nadia Calvino said so bluntly . The policy has advanced that at the end of the month (specifically on June 29) he will meet with the bank employers (AEB and CECA) and in this meeting “we will talk about the remuneration of deposits.”

Calviño has made these statements in the summer courses of the Menendez Pelayo University with the collaboration of the APIE (Association of Economic Information Journalists), in Santander, and which celebrates its 40th anniversary this year. And it is that the remuneration of deposits or, rather, its absence by the large banks, threatens to become the great controversy for the financial sector this 2023.

Especially when the European Central Bank (ECB) has raised interest rates again in June, placing them at 4%. On the other hand, the remuneration of deposits in Spain is still well below what is paid in Europe. In Spain, the average rate at the end of April for fixed-term deposits stood at 1.41%, below the 2.09% paid in the euro area. In addition, in the fourth month of the year the difference in the remuneration of national deposits with the rest of Europe widened.

For his part, BBVA Chairman Carlos Torres insisted, during his speech, that this is due to excess liquidity in the system. “For the same reason that when interest rates were negative, this situation was not passed on to customers,” the manager recalled. Likewise, he pointed out that it is a dynamic situation and to the extent that this scenario is reversed “we will see an increase in returns”, but “banks that have excess liquidity do not need it”, he recalled. Torres has ruled out that it is due to lack of competition, as the Bank of Spain pointed out. “But we offer customers alternatives with savings who want to invest very attractive alternatives.”

In this sense, the organization headed by Pablo Hernández de Cos recognized that the excessive liquidity of the system was one of the reasons that explained the low profitability of these products in Spain, but not the only one. Since he also convinced that it was due to a lack of competition.

Calviño has also referred to the extraordinary tax on banks, which has already collected almost 1,200 million euros. In this sense, the Second Vice President of the Government and Minister of Economy, recalled that these taxes were changed to distribute the cost of the war in Ukraine and pointed out that in the last meeting of Ecofin there have been countries that have been interested in their experience . Despite this, she has not clarified whether or not she is in favor of extending them, as she did drop the second vice president and Minister of Labor, Yolanda Díez. In conclusion, Calviño pointed out that “these taxes are brought forward on a temporary basis and a review of them is planned to make reassessments and be able to adopt the best actions for the coming years.”

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

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