MADRID | By Fernando G. Urbaneja | As a child, Emilio Botín used to listen to his father urging the branch directors of Santander bank –back then a local commercial lender- to capture more term deposits. Until his death on Wednesday, Mr Botín was head of Europe’s largest commercial bank, attentive to the evolution of credit lending in each regional branch, as well as in Spain, the United Kingdom, Brazil or Poland. He was a full-time business banker. There were no distractions for Emilio Botín: even when he was hunting in Africa or playing golf he was looking through his business reports; at the weekends he used to meet the executives of Santander at his own place. The bank was his only truly passion.
Spanish banking system
MADRID | The Corner | Spanish banking landmark Emilio Botin died on Wednesday at 79 of heart attack, but the country’s main lender won’t be without a captain for long: a special board meeting will be hold on Wednesday to designate a new chairman, the bank said in a statement. Scion of a wealthy banking dynasty, Mr Botín was the head of Spanish banking internationalization. Shares in Santander dropped 1.7 percent to 7.6 euros at 0710 GMT after the announcement.
MADRID | By JP Marín Arrese | The Bank of Spain tough line on refinancing is likely to force extra new provisioning. Especially in entities where that practice was developed with little precautionary measures.
MADRID | By JP Marín Arrese | Lacking enough resources to shore up potential contingencies, Spanish banks might be forced to ask for further assistance under the rescue umbrella.
NEW YORK | Several of the top Spanish companies put on a big show this Friday at New York’s Nasdaq. Telefonica, Indra, Dragados, Santander, Iberia, Repsol and many more shared their perspectives at the Spanish Economic Forum in order to boost their image among American investors and break some stereotypes. But how much do these iniciatives help to build real muscle? On the to do’s list: showing more optimism and sharing the cake with the start-ups.
MADRID | Capital Madrid | The Spanish savings banks or cajas, unlisted entities often linked to the country’s regions, have come under intense scrutiny since the beginning of the crisis, as some became associated with the worst excesses of the banking sector. But they have already started a restructuring process: by 2015 they will be 35% smaller.
The first 3-year injection auction in November 2011 allowed the Spanish banking to get cheap and long-term funds, which substantially varied its liquidity position. According to AFI analysts, it also limited risks associated with restrictions to renew and issue bank debt and to attract sufficient retail funds to offset the fall in wholesale funding.
MADRID | A few weeks ago, the Spanish government adamantly denied any hint on disbursing a single penny in banking sector support. A few days ago, it acknowledged the necessity to do just the opposite for anchoring ailing entities. In a desperate face saving attempt it discarded such a funding might lead to open aid, support being provided at a punitive 10% interest rate. But BANKIA discomfiture has led to a…
By Luis Arroyo, in Madrid | At FTAlphaville there recently was talk about the Spanish banking system. Sí, that particular banking system that, according to the Bank of Spain governor Fernández Ordóñez, has fixed itself without the nation’s Treasury putting any euro at all. The answers to questions like who ordered him to say this, and what for, when everybody knows and complains about public capital injections in our banks are…