The president of Banco Sabadell, Josep Oliu, has not ruled out this Wednesday, mergers in the financial system in the face of pressure to the banking of investors to reduce costs and concentration: “Maybe, we’ll see.” This is not the first time that Oliu performs similar statements although recent statements have made reference to Bankia.
In a conference at the Chamber of Commerce of Sabadell on ‘economic Outlook to 2020’, has reiterated that the entity is not valuing any fusion, although it has been considered that in the present context it would be logical that there would be this type of processes.
For the tenth the fourth consecutive year, Oliu has pronounced a conference in the Chamber of Commerce of Sabadell, where it has been recognized that the business perspective of the Spanish financial institutions “is not very buoyant”, in his opinion, by the perception of the sector to international investment.
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Oliu does not rule out a merger with Bankia, “although now is not on the table” The problems of the subsidiary, TSB and the sale of portfolios reduced by 56% the benefit of Sabadell, the president of The Sabadell has pointed to the low interest rates as the cause of this situation and has indicated that investors are “making a push” for banks to further reduce costs and focus on a possibility that does not preclude that from occurring in the future in the case of your entity.
The year 2020, has indicated, has begun “with some doubts” about evolution of the Spanish economy now that it has formed the new Government PSOE-We, a coalition, has said, that “we have not seen ever in Spain” and creating “uncertainty” among investors.
“The doubt is, and that means that the new Government will have to strive a lot in doing it well. Starts with a handicap”, said Oliu before some 150 entrepreneurs from the region of the Vallès.
Growth of 2% in 2021
Despite the uncertainties facing the financial sector, Oliu believes that Spain will hold this year its upward cycle and that the economy will maintain a growth close to 2 % per year.
it will do So in a context in which interest rates remain at historic lows, with a favourable evolution of the labour market and with the companies in a good financial situation and treasury. The focus this year will be placed in the internal governance, but also on other external factors such as the ‘brexit’, as Spain has an economy closely tied to the United Kingdom.
Of how to evolve the negotiation between the british government and the EU to enforce the ‘brexit’ is also very attentive to the Banco Sabadell, which operates in that country through its subsidiary, TSB.
“The ‘brexit’ is very important to us. It is a topic that never ends…”, he complained Oliu, it looks unlikely that the 2020 is close the trade agreement, although not expected to produce large surprises in the negotiation.
In his traditional conference in Sabadell on the economic prospects for 2020, Oliu has also addressed the situation of the real estate market, which has predicted that it will continue to grow this year and that prices, which are 20 % below pre-crisis levels, will continue to rise.
Oliu has warned this Wednesday that there are “doubts” in the markets on the evolution of the economy with the new Government of coalition PSOE and United we Can. Has been suggested that, despite being within the limits of the eu deficit would have to bet on “policies austere and consistent with what would be the medium-term needs”, and has reminded that the International Monetary Fund (IMF) has lowered by two tenths, to 1.6%, the forecasts for growth in Spain and which do not coincide with those of the Ministry of Economy.
Oliu has fixed attention on the “possible risks from price inflation” that might occur in Spain, although, as indicated above, the official versions precluded, and there is a possibility also in countries such as Italy, Germany and France.
he Has criticized the “tendency for interventionism” of the administrations, including sectors, as well as the rental price of the dwellings, and occupations, predicting that by acting in this way may cause harmful effects.
