The uncertainty about the end of the pandemic has led the monetary authorities to recommend caution to banks with the aim that they continue to strengthen as they have done since the beginning of the crisis. Unlike what happens with the rest of the listed companies, banks are subject to specific regulations, both Community and Spanish, which are more advanced than that of good governance. Banking is a disciplined sector that responds to extensive and demanding regulation, which has undergone many profound changes since the 2008 global financial crisis. Rapid adaptation to these requirements has allowed Spanish banks to greatly increase their solvency and resistance capacity, and thus respond to the needs that have arisen with the pandemic.
Banks and their employees are effectively mitigating their impact on families, protecting the productive fabric and collaborating with the authorities in the implementation of essential measures such as financing through ICO loans or the payment of ERTE. Support for society in the most difficult moments that has received public recognition from national and international authorities.
Banking activity takes place in a complex and changing environment marked by the economic situation, but especially by the covid, which has accelerated trends that were already being imposed.
Digitization, the demographic challenge resulting from the aging of the population, and the energy transition are already integrated into the decision-making of financial institutions. They are the keys to improving the economy in the coming years, and their relevance to our lives has multiplied after the experience of confinement and measures of interpersonal distance.
In addition to the change in habits and customs of customers, who visit the branches less, banks operate in a scenario of low profitability as a result of low interest rates, also marked by high competition from large technology companies, free from the strict regulation and supervision of banking, and without its vocation of universal service regardless of the technological degree of the client. To adapt to this environment, banks are making necessary structural adjustments, changes that supervisors have long been demanding of them and that are being undertaken in order to continue to play a key role in the current difficult environment. Its priority is to support families and companies and promote the post-COVID economic recovery that we all want, based on a new economic model better than the previous one, which enhances the care of the environment and is more beneficial for all layers of society.
Jose Luis Martinez Campuzano He is a spokesperson for the Spanish Banking Association (AEB).