The millionaire spending in defense that projects the European Union For the next few years, not only has it to come from the public sector – where a display of 800,000 million euros is estimated – but also intends to involve banking in all … These investments. Although the idea of community rearme is still in its most initial phase, there is already some financial entity that has shown its willingness to finance the millionaire disbursement that will come: BNP Paribas.
BNP is a French bank with a presence in more than 60 countries and is the largest entity in the entire EU with 2.7 billion euros in assets. A giant who has already communicated to the market “his commitment to support the financing of companies in the defense sector” in Europe.
The group provides support to both corporations and SMEs to carry out their projects in these next years. And promises not to remain in financing but is offered to participate in financial guarantees, debt, management of direct assets and investments. “Thanks to your experience, BNP Paribas fully undertakes to support the development provided in the defense sector and to meet the future needs of its clients in this area,” says the French bank.
Beyond this entity, the rest of the sector remains waiting for future movements. In Spain, the great banking has not changed its speech. It is an area that is already financed, but none of the three largest national banks –Santander Bank, BBVA and CaixaBank– He has undertaken no change in his policy.
The policy of these entities remains immutable at the moment and remain waiting. In that policy, the criteria and objectives that they use to finance the defense sector are collected, such as respect for human rights, not to enter nuclear weapons, etc. The reality is that supporting this area of activity is something that in recent decades has not been well seen at a social level, to what entities usually opt for caution.
At European level there has been some more pronouncement. Deutsche Bank, the main German entity, has not come to communicate its iron support to the sector as it has done its French counterpart, but it has spoken about the needs that come and the changes that would be needed.
Fabrizio Campelli, Head of Corporate Banking and Investment and Member of the Council of Deutsche Bankhe said recently in a speech that Europe faces difficulties for deployment of the resources that are needed, before which he launched several recommendations. Among these recommendations is to facilitate financing and investment in defense simplifying regulatory frameworks and reform capital markets.
The regulation
Precisely the issue of regulation is one of the aspects in what banks most influence as a whole as a catalyst for greater financing of defense spending. And it also affects this from the Bank of Spain. The governor, José Luis Escriváhe pointed out a few days ago in an event organized by the Spanish Banking Association (Aeb) that the commitment to reinforce in defense raises “important challenges” from the public sector.
From the private sphere, Escrivá revealed that “bank financing to the defense sector is at very small levels.” The governor recognizes that these types of bets have special characteristics such as greater uncertainty … and “strict normative demands.”
In this sense, he asked to evaluate “if the current regulatory and supervisor frame offers the appropriate incentives to mobilize bank financing towards this type of investments, and analyze how the banking sector could play a more active role in this strategic field.” In other words, it is demanding a review of European regulation since the truth is that there are elements such as capital requirements for long -term exhibitions that do work on these projects.
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