Oliu warns against possible merger between BBVA and Sabadell

Continental Banking Union

Regarding the future of European banking consolidation, Oliu said a continental banking union is a goal that has not yet been realized, but he believes it is “desirable” and will eventually become a reality.

“Today we have obstacles that work against them, such as the lack of a European deposit insurance system, and the European Council must urgently address this problem,” he said.

banking union This is a necessary step to improve the resilience of the European system and should facilitate cross-border mergers, Oliu added, citing “tax diversity” and regulatory differences between European regions as other important obstacles to integration.

“When domestic consolidation reaches its limits due to competition, the necessary aspects such as strength, size and technological capability can be achieved through cross-border operations to create stronger and larger banks,” he said.

While banking consolidation can help strengthen the financial system, “it is not always good,” Sabadell’s president warned at the same time, and does not always create value for shareholders.

If the consolidation process occurs “as a result of a vision that can be shared and accepted by the various players involved, as well as employees, customers, the community and politicians, the value will be enhanced,” he said. Otherwise, he added, “the value will be at risk.”