BBVA names David Puente as global head of Client Solutions, replacing Derek White. Ricardo Martín Manjón will become the new global head of Data.

Current progress in finalizing the Banking Union has been insufficient. There are still a number of elements to be settled, fundamentally resolution, insolvency, and the deposit guarantee scheme. “It will not be easy to reach an agreement on the most important aspects prior to the European elections for parliament, but it is critical to do so as soon as possible to avoid jeopardizing member countries’ commitment to the Banking Union,” maintains José Manuel González-Páramo, BBVA executive board member.

In response to the growing demand for passive investment instruments, BBVA Asset Management is encouraging institutional investors to use its range of passively managed index funds, called Bindex. This product line facilitates efficient portfolio creation thanks to the simple nature and low cost of the instruments.

The deal, structured as per the German debt instrument, is worth €220 million, which will be allocated to sustainable projects. Blockchain technology was used to manage the negotiation of the deal, and both BBVA and Madrid’s regional government used their own nodes to establish a network between the two parties.

Digital loans (or D-loans) are a type of corporate bank financing (which could also come in the form of credit facilities) for which the price is linked to the company’s degree of digitization. The digital maturity level is determined annually by specialized independent consulting firms after a thorough analysis. If the company improves its level of digitization, the conditions of the bank financing also improve. By doing so, the company aligns its financial instruments with its corporate strategy, and has a financial incentive to improve its degree of digitization and accelerate its digital transformation over time.

Mario Draghi reiterated this week that the ECB could tentatively delay the planned rate hike until next year. At a conference in Frankfurt, Draghi responded to banks’ concerns by saying negative rates could impact bank profitability, although it “is not an inevitable consequence.” Given these statements, we asked Olga Gouveia, Lead Economist for Financial Systems at BBVA Research, what is the impact of the decision to keep negative interest rates. In her opinion, it is reasonable the precautionary tone of the ECB, provided that there is a planned hike on the horizon.