The president of the Spanish Banking Association (AEB), José María Roldán, has defended the remuneration received by senior banking executives and has opted to complete the European banking union so that entities are encouraged to participate in cross-border merger processes.

During his participation in NEF Trends this Monday, Roldán highlighted that Spanish banks have always been able to reach agreements with unions when negotiating restructurings, which sometimes pay shareholders for the high outlay they require, but which in turn improve efficiency and profitability.

Regarding the criticisms about the high salaries received by bank executives, in a context of crisis and staff adjustment processes, the president of the banking association recalled that the salaries of the Spanish banking sector are not above other sectors (taking the rest of the Ibex 35 companies as an example) or from other European countries.

Roldán has also highlighted that the remuneration of the banking sector is subject to high regulation, which does not focus on amounts, but on the incentives it creates for proper risk management. Thus, it has deferral elements and ‘malus’ and ‘clawback’ clauses to ensure proper management.

On the other hand, it has influenced the fact that the remuneration is approved by the shareholders’ meetings in some “complicated” debates.

“That is the natural terrain where these issues must be discussed, the votes in the boards are not unanimous,” said Roldán, who also recalled that during 2020 there were important cuts in bonuses for senior banking managers who answered no to the evolution of the business but to a question of solidarity due to the economic situation.

European mergers

Regarding the transformation of the banking sector, Roldán explained that entities must transform their business model in a context of structurally low interest rates that pressure their profitability, improving efficiency on the expense side.

As he has indicated, there are many more banks in Europe than in the United States, so the concentration processes are positive in this regard. Furthermore, the largest and strongest Spanish entities are the product of these processes, so “it was important to continue on this path.”

In his opinion, the mergers have been “an element of strength” in the Spanish case and, once the national mergers are running out, it would be the turn of a stage of European consolidation, where the Spanish entities “have great possibilities of being great players”.

However, cross-border consolidation faces the hurdle that the banking union is “half built.” In fact, it has recognized that the banking union will be a victim of the coronavirus pandemic in the short term, due to the greater impact it has had in Spain due to the weight of the service economy and tourism.

In this scenario, Roldán has called to avoid a setback in financial integration in Europe. “It will take politicians with courage, capable of understanding that, at this time, there have not been problems of mismanagement but rather a crisis that has affected European countries differently, but not because we have done worse. I hope that this greatness of you look possible “, has reflected.


Source link


Please enter your comment!
Please enter your name here