Daniel CaballeroSEGUIRMadrid Updated: Save Send news by mail electrónicoTu name *
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The bench -just as the entire Spanish economy – is going through a paved road. The European Banking Authority (EBA, for its acronym in English), claimed a few days ago, that the financial institutions have enough muscle to overcome the crisis. However, that does not mean that you do not face risks in the short, medium and long term, as shown by the BBVA in its prospectus continued to be remitted to the National Commission of the Market of Values (CNMV).
The entity, in the document addressed to investors, warns about several circumstances that could impact negatively on your business. And call attention to two in particular: the tax hikes and the possibility of an increase of the political tensions in Catalonia because of the independence.
“The governments of various jurisdictions seek to locate new fiscal space, and recently, they have focused with special attention on the financial sector”, reads the text, for later to enumerate the number of risks to tax level. Refer, specifically, to the increases in the tax rate of certain taxes; the establishment of a minimum rate of 18% in the Tax ; and to the so-called “Tobin tax”. All of them “can have adverse effects on the business, financial condition and operating results of the Group.”
beyond the tax issue, the BBVA has warned about the situation in Catalonia. It now recognizes that the sea is relatively calm with the autonomous community but do not rule out a resurgence of the confrontation with the State. “Our business in Spain includes operations in Catalonia, so it could be affected in case of increase the political tensions evidenced in the last few years. While these tensions have been reduced in the last year, in the event of a new confrontation institutional could be scenarios of uncertainty, volatility in the capital markets and a deterioration of the financing conditions of the Spanish economy”, explained the bank. All of this affecting your business and the environment in which it is mueben in this region, which represents 18% of the group’s assets in all of Spain.
Also, the agency emphasises the risks of a regulation changing and more demanding than in previous years. He speaks of a “continuous escritinio” at the political level and supervisor, and does not rule out higher requirements because of the Covid-19 : “it Is equally possible that governments and regulators to impose additional regulations ad hoc in response to crises such as the one unleashed by the pandemic Covid-19 or for other reasons”. And alert you to possible changes in the level of capital and liquidity requirements, which could change at any time, even more so now because of this crisis in which the world is immersed. “Both the requirements of total capital as of MREL are subject to change and there is no guarantee that the bank and/or the group are not subject to more stringent requirements at any time in the future. Nor can it be ensured that the Bbanco and/or the group may exceed the requirements that will be applicable in the future even if these were lower or equal to”, says the brochure continued.
