Escrivá announces a reinforcement of the Bank of Spain’s workforce: “We have excellent employees, very stressed”

The governor of the Bank of Spain, José Luis Escrivá, has announced in his first appearance at the Economy Commission of the Congress of Deputies that he is going to launch a new strategic plan for the period between 2025 and 2030.

This will involve an organizational transformation of the institution that is now being worked on “internally” and will involve “reinforcing areas”, such as technology. At this moment, Escrivá pointed out, the objectives are being defined to “have it finished in spring.” The basis, he assured, is “transformative, transversal and transparent.”

And part of it involves expanding the supervisor’s staff. “We have verified, we already knew, that the Bank has a very fair allocation of human resources,” he indicated.

The Bank of Spain “has 12% of the capital of the Eurosystem, which has to do with GDP and the population”, but “we do not have more than 5% of the employees.” “This means that, although we have excellent employees, they are sometimes very stressed and have many difficulties keeping up with the rest of the central banks that have many more human resources, especially in the technological field,” he justified.

“We are a very efficient bank, but that does not mean that we are so effective in all functions,” Escrivá concluded during his appearance.

In the presentation with which it accompanied its intervention, the Bank of Spain breaks down that it has a staff of 3,473 people, compared to 6,968 at the Bank of Italy or 10,255 at the Bundesbank.

Escrivá has not specified how many hires there will be, but that presentation does reflect that “the number of people” who work at the Bank “is much lower than that of any other comparable central bank in the Eurosystem.”

Also, that for hiring we will promote “regular, predictable selection processes with a greater number of positions and we will reduce our temporary employment rate” which stands at 14%. Also that “the focus will be placed on reinforcing technological profiles to promote innovation and the use of data: the Bank of Spain weighs 12% in the capital of the ECB, but only has 5% of the technological Bundesbank resources.”

Defense of independence

During his speech, the governor of the Bank of Spain broke down the functions of the institution and the challenges it faces. Among these functions, he has cited the analysis of the Spanish economy. “I think it is compatible to be independent and advise the Government but we have not developed it sufficiently,” he assured.

“We have that function, but we do not have it regulated and that generates a lack of specificity,” he acknowledged. Regarding the reports, he pointed out that they are collective, collegiate decisions that reflect the opinion of the supervisor. On the margins are the analyzes carried out by its researchers.

As for other functions, he has cited challenges such as improving the bank resolution model. “We need Europe to create a European guarantee fund and risk mutualization,” he urged. “It is pending.” There, Spain has a “clear position. If we want to move towards a single banking system, we need Europe to move forward and risks to be pooled in deposit guarantee funds. The Spanish are well endowed with resources, but let each suit hold its candle. There are countries that find it difficult to move in this direction.”

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