Latest news with #banco
Reuters
4 days ago
- Business
- Reuters
BBVA to invest $5.2 billion in Mexico through 2030
MEXICO CITY, May 27 (Reuters) - Spanish bank BBVA ( opens new tab plans to invest more than 100 billion pesos ($5.19 billion) in Mexico through 2030, it said in a statement on Tuesday. The investment is part of BBVA's long-term bet on the Latin American nation, the firm added. "The 100 billion pesos that we are announcing is not only an investment," BBVA chair Carlos Torres Vila said in the announcement. "It's a commitment to the more than 30 million customers we serve in the country." BBVA added that it was looking to further strengthen its corporate banking presence in the nation and boost customer service. ($1 = 19.2575 Mexican pesos)
Malay Mail
24-05-2025
- Business
- Malay Mail
The deep distrust driving Argentines to hoard ‘mattress dollars'
BUENOS AIRES, May 24 — Argentine 'Rita Lopez,' 84, keeps her US dollars hidden in an empty pea can in the kitchen. Since childhood, she has steered clear of banks in a country that has veered from one economic crisis to another. 'I wouldn't even think of putting my savings in the bank,' the former lawyer told AFP at her modest apartment in Buenos Aires. She asked to use a fake name to shield herself from thieves. Lopez is not alone. The government estimates there are about US$200 billion (RM846 billion) so-called 'mattress dollars' out there — five times the reserves of the Central Bank. On Thursday, President Javier Milei's government launched a plan to encourage Argentines to bank these dollars, also commonly stashed under floorboards, in safety deposit boxes or offshore accounts. Under the initiative, anyone can make a deposit of up to 100 million pesos (about US$90,000) without having to declare the provenance. The goal is to boost foreign reserves, stimulate the formal economy and bolster the peso. But Lopez remains sceptical. 'The one who kept his savings (in the bank) was my father, he always lost, it always went bad for him,' she said. One of the worst moments, said Lopez, was in 2001 when the then-government put in place so-called 'corralito' (corralling) measures to limit cash withdrawals and freeze bank accounts. That move, intended to limit capital flight in the midst of a prolonged recession, was widely considered draconian and the spark for protests that left 39 people dead and toppled a president. Trafficking, corruption, smuggling? Argentina has faced 16 economic crises since 1860. Lopez has lived through seven of them in the last 50 years. Countless people lost life savings as the system collapsed over and over, inflation spiralled out of control, and governments imposed currency controls. Their fingers burnt, many Argentines took to trading their battered pesos for whatever greenbacks they could lay their hands on, and hoarding them at home. In cash. Now Milei wants that money to enter the system, saying in an interview Monday: 'I don't care in the slightest where the dollars come from.' His is not the first Argentine government to try this. As long as the dollars are not in the system, explained economist Julian Zicari of the University of Buenos Aires, they 'do not contribute to (foreign) reserves nor generate lending capacity for banks.' Self-declared anarcho-capitalist Milei has imposed strict budget-cutting measures on the South American country since taking office in December 2023, resulting in inflation dropping from 211 per cent to 118 per cent last year. Maintaining a stable exchange rate is one of his chief goals. Last year, a tax amnesty brought in billions of dollars in deposits and, in April, Argentina received a first tranche of US$12 billion from a new US$20 billion loan agreed by the International Monetary Fund (IMF). Some fear the 'mattress dollar' concessions will abet money laundering, though the government has denied this. 'By not requiring justification of origin... the possibility is enabled for funds from drug trafficking, human trafficking, public corruption or smuggling to be incorporated into the formal system,' economist Pablo Tigani wrote in the Ambito newspaper. In effect, he argued, it amounts to 'an amnesty for those who did not pay taxes, without any distinction between tax evasion, illicit enrichment, or even money laundering.' Presidential spokesman Manuel Adorni insisted Thursday that those with undeclared funds 'are not criminals, they are the vast majority of Argentines who have been abused by excessive taxes and controls.' Either way, Lopez insists nothing can get her to part with her pea can. 'One day the government tells you one thing and then another government comes in and does something else. I don't trust them. I wouldn't put my money in the bank,' she said. — AFP
Reuters
22-05-2025
- Business
- Reuters
Spanish bank buying Novo Banco is not in Portugal's interest, minister says
LISBON, May 22 (Reuters) - Portugal is concerned about over-dependence on Spain in its banking sector and views an acquisition of its fourth-largest lender Novo Banco by a Spanish bank as contrary to the country's interests, its acting Finance Minister said. According to Spanish media reports, the country's Caixabank ( opens new tab, which owns Portugal's fifth largest bank BPI, was weighing a bid for Novo Banco, although the Spanish bank has not commented on those reports. "Spanish banks already represent roughly a third of the Portuguese banking market and, for reasons of concentration and dependence, this figure should not rise," Joaquim Miranda Sarmento told broadcaster RTP late on Wednesday. "It is in the country's interest that there is no excessive dependence or concentration in our banking sector in the hands of banks from a single country such as Spain," he said, without elaborating why it would be of concern. Unlisted Novo Banco, which is 75% owned by U.S. private equity fund Lone Star, in February began preparations for an initial public offering of 25%-30% of its capital but a full sale has not been ruled out. Miranda Sarmento said it was up to majority stakeholder Lone Star to decide on whether float the bank or sell it. The remaining 25% stake in the lender is held by a resolution fund, which is financed by Portugal's banks and the Portuguese state. While the stake does not allow the state the power to block a deal, it would be difficult to finalise it without the government's consent. Last June, the CEO of state-owned Caixa Geral de Depositos (CGD) Paulo Macedo said Portugal's largest bank was considering buying another lender to preserve its market leadership in the face of expansion by foreign banks, particularly those from Spain. Should CGD make a bid "alone or together with another bank" for Novo Banco, the Portuguese state would have the final say on the transaction in such a scenario, Miranda Sarmento said. Portugal's top five banks, which also include Millennium bcp ( opens new tab and the Portuguese unit of Spain's Santander ( opens new tab control more than 80% of the country's banking assets.
Bloomberg
11-05-2025
- Business
- Bloomberg
Spain Said to Back Sabadell Tie-Up as Alternative to BBVA Deal
The Spanish government is open to considering a tie-up for Banco Sabadell SA with another local bank as a way to counter an unsolicited bid from BBVA SA, according to people familiar with the matter. The government would encourage a deal between Sabadell and a Spanish rival that isn't BBVA, according to the people, who asked not to be identified discussing private matters. Any deal is unlikely to happen soon, according to the people.
Irish Times
08-05-2025
- Business
- Irish Times
Spain to consult on banking merger an unusual step
The Spanish government is taking the unusual step of opening a public consultation on a banking takeover that would lead to the merger of two of the country's biggest lenders. BBVA , Spain's second-largest bank in terms of assets, has been attempting a €13 billion hostile takeover of Sabadell , the fourth largest. The Socialist-led government has warned that a merger would destroy jobs and be bad for customers. It has also raised concerns about the negative impact the new super-bank could have on competition in the financial market as well as worries that it could hurt the many smaller businesses which depend on credit from Sabadell. READ MORE BBVA, which has 13 million customers, has become a global brand with a significant presence across Spain and Latin America. Sabadell has 6.5 million customers and its roots are in the Catalonia region. The new lender would have more than a trillion euros in assets. Will DoorDash takeover of Deliveroo mean better pay and conditions for gig economy workers? Listen | 28:33 BBVA chairman Carlos Torres has argued that the merger would be good for the Spanish economy, generating a higher tax base and giving the country a stronger financial presence in Europe. The Spanish market regulator has broadly approved the takeover, although it flagged up areas of concern, such as a possible threat to competition in areas of retail and payment services, where the new entity would exceed 30 per cent of the market share. BBVA has sought to allay such fears, for example, by pledging not to close branches in smaller towns and keeping existing credit lines open for small and medium-sized businesses. The government cannot block a bid outright, but it can demand tighter conditions for a deal. As it considers how to proceed, it has opened an online consultation, posted on the economy ministry's website. Holding a non-binding public debate like this is unprecedented for a big corporate issue, and Spanish prime minister Pedro Sánchez's announcement of it surprised many in the country, but it reflects how thorny this potential merger has become. The economy ministry must take the issue to a cabinet meeting later this month and the government will then have another month in which to decide whether or not to keep opposing a deal which could make waves across the Spanish and European financial sectors.
