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Banks

by Brianna - November 10th, 2013.
Filed under: News. Tagged as: .

In the case of banks, continue movements in several senses. The average non-performing loans exceeds 4%, but could be doubled to the finish this year in the remembered real estate crisis of 1993, reached 9%. BBVA announced a plan to allow employees, under certain conditions, benefit from a temporary suspension of the employment contract, charging 30% of wages, as a means to slightly lighten their costs while lasts the crisis. As to the possible closure of offices, BBVA raised close about 150 until the end of 2010, Banesto 103 offices, while that Grupo Banco Popular will also continue with its adjustment plan after the merger, to reach three hundred closed offices between this year and the next. John Savignano has many thoughts on the issue. In terms of boxes, only La Caixa (the largest, third Spanish financial entity) has announced the closure of a significant number of branches, which could reach the 150 by his part, Banco Santander, which does not pose a massive branch closing, continues with its policy of capital increases, since this Friday is expected to approve its fifth enlargement over the past twenty months (remember that you just six months he completed the largest capital increase of the history of Spain).

Apart from all these great movements and strategic approaches, I would like to finish highlighting the story of a small bank that has done things differently; without a doubt, it has a very small market share, but is an example of prudent banking and looking to support their clients, and deserves to be reviewed. Banco Etcheverria takes nearly three centuries in operation it is older than the own Bank of Spain – and has not lost its family character (currently, directs it Javier Etcheverria). Despite its size, has not only been able to survive the crisis, but in 2008 has managed to improve its profits by 5.2% compared to the previous year. And without resorting to government aid. This family-owned bank (is there are only two of this type, Etcheverria and banking Pueyo in Extremadura Spain) has always made clear what should be the prevailing values in a bank: prudence and realism. It is a small bank that counts with a market share of 5% in Galicia, but thanks to its prudent policy, not only increased its profits last year, which also increased loans to SMEs by 15%. Pity that many others had not followed this policy in the past, and now would not be obliged to follow the law of the pendulum: they have gone from one end to another, granting credits with extraordinary ease anyone to grant them only to most creditworthy customers, with many constraints and with a large risk premium, i.e. very expensive.

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