Bankia: the last segment of public banks should disappear?

• www.attacmallorca.es
• View Original
• February 28th, 2018
• 
  

 Julio Rodríguez  -  ATTAC Madrid

The question is how Bankia can contribute more to the economy, as well as privatizing public bank or seeking to recover a portion of the amount contributed.

Once materialized the absorption of Banco Mare Nostrum (BMN) by Bankia in December 2017, is only the latter as accidental residue of what was an important segment of public banks in Spain. 

In parallel, the bank has increased concentration in Spain, so that five banks (Santander, BBVA, CaixaBank, Bankia and Sabadell) for more than 80% of bank assets in the Spanish credit system. 

It is analyzing, trying to put aside ideology, if you have interest to the financial system itself and for the Spanish economy Bankia remains a government-controlled State Bank.

The actual public banks, that is, the four official credit institutions -BC Agricultural, BC Industrial, BC Local and Banco Hipotecario plus the Banco Exterior of Spain and the Postal Savings Bank were privatized in a process that began in May 1991. 

All this segment of the credit system was integrated into Argentaria, which was later absorbed by Banco Bilbao Vizcaya, to end at the current BBVA.

Privatization, determined by the socialist government a proposal of the Minister of Economy and Finance, Carlos Solchaga, affected even existing post offices in post offices. 

SMEs, municipalities and promoters of social housing they missed a good season to public banks absorbed by the second Spanish private bank.

Savings banks were created in the nineteenth century to combat banking exclusion. 

These entities were private foundations, with strong public and union presence in their governing bodies. 

With the creation of the autonomous State, supported by the 1978 Constitution and the Statute of Autonomy, the protection of the boxes went to the autonomous communities. 

These administrations acted as if they were boxes banks to serve their political objectives.

The activity boost supplied to the boxes was evident from the autonomies. 

However, the deskilling of managers and excessive credit concentration in the real estate segment led to numerous cases to insolvency. 

The output of the situation were cold mergers, SIP, which ended up becoming banks, not savings banks larger.

In the process of banking consolidation has subsisted Bankia, Banco resulting from integrating some eleven savings banks, with majority state its shareholders. 

The formal cap for privatization ends in December 2019. Bankia could remain under public control and decide the Government of Spain. 

The question is how Bankia (balance of 214,000 million at 31.12.2017 and loan portfolio 128,800 million) can contribute more to the economy, as well as privatizing public or bank seeking to recover a portion of the amount contributed.

Real to increased competition in the credit system contribution, clear performance against financial exclusion, curbing a sharper banking oligopoly, funding the creation of a public housing stock of social rent, acting as banking proximity, they could still be targets of public bank, attentive to your bottom line and your creditworthiness. 

Bankia management should be approved by the Congress of Deputies a proposal by the Government. 

The management model should be rather closer to what they were extinct official credit institutions to which were also missing savings.

ATTAC Mallorca  not identifies necessàriament amb els continguts publicats, excepte quan són signats per own organització.