Peio Belausteguigoitia: “A larger, stronger bank is good for customers, shareholders and employees”
BBVA's country manager in Spain, Peio Belausteguigoita, stated on Tuesday that the deal with Banco Sabadell holds significant potential for value creation. “Having larger and more robust banks benefits customers, shareholders, and employees,” he remarked during the II Financial Forum of Prensa Ibérica, titled ‘Strategies for the Future European Banking Union.’ He also emphasized that the integration will result in an institution with an enhanced “ability to provide improved products and services to customers.”
During the event, the country manager stressed the importance of having “larger” banks in Europe. He remarked, “If we analyze the global ranking of banks by market capitalization, not a single bank from the Eurozone is among the top 25, which puts us at a disadvantage.”
Peio Belausteguigoitia cited Germany as an example, noting that despite its financial sector being “highly fragmented,” financing there is more expensive. “Financing for businesses and SMEs is costlier in Germany than in Spain, even though it has more market players,” he explained. In his view, the German case illustrates that there is no direct link between the level of competition and the number of financial institutions. Instead, what truly matters is that the players are efficient and capable of providing better products.
The country manager emphasized that the Spanish financial market “has zero barriers to entry,” making it one of the most competitive in Europe. He stressed that the level of competition is not determined by the number of institutions but rather by their productive efficiency. Additionally, he noted that digital transformation has facilitated the entry of neobanks and fintechs, further increasing competition in pricing and product offerings, ultimately benefiting customers.
Regarding the approval process by the Spanish competition authority, the CNMC, Peio Belausteguigoitia explained that the authority conducted a thorough and exhaustive analysis during the first phase, identifying only three very specific issues that require further examination in the second phase. “Looking ahead, we will continue working with the CNMC based on the proposed remedies already presented by BBVA, some of which are unprecedented, and we will collaborate to ensure the application is resolved in the coming months,” stated BBVA's country manager in Spain.
BBVA's country manager in Spain highlighted that, according to the CNMC report, in terms of market concentration, the resulting entity would be the only bank present in just 8 out of Spain's 8,100 municipalities, and BBVA would maintain its physical presence in all of them. Furthermore, at the postal code level, only 69 out of the 11,700 across the country would have fewer than three financial institutions, and in those areas, BBVA will uphold its terms of business for both individual customers and SMEs.