This Thursday there was one of the most important economic news in recent months: Bankia and CaixaBank prepare their merger in pursuit of becoming the main bank based in Spain.
How does it affect customers?
For customers, this merger would imply that there will be less competition, but at the same time it means more solvency. They are going to be stronger entities, as argued by the ECB, because competition is not domestic, but international. The concentration of banking entities in Europe has gone from more than 8,000 to 6,000 in recent years.
On the other hand, for banks it is a return to the past, a concentration higher than that of the 1980s in the days of the seven main banks in Spain. TOthat those seven big banks will remain in three big banks that will have a similar quota to those of then.
How does it affect workers?
Finally, for workers it is the worst news of all. The latest wave of mergers resulted in 52,000 fewer employees. The system has the same number of employees as in the 70s, going from 270,000 workers in 2008 to just over 200,000. Together, both entities add 51,000 employees, so the possibility of adjusting templates is present.
What will happen to the ransom money?
“The chances of him recovering now are greater are very large because the profitability possibilities areare greater than those that Bankia had in isolation, “says analyst Emilio Ontiveros, a financial analyst while adding that the State is going to go from have 60% to have 14-15% of the resulting filiature. However, he believes that he will not recover all the money overnight, but insists that the profitability will be “superior”
For his part, Santiago Carbó, Professor of Economics and Director of Financial Studies at Funcas, believes that “If now something is sold that in the sector is not worth per unit what it was worth, “so it will be” very difficult to recover. “In this sense, he believes that it is a good time to close the State’s participation in the financial institution.
“There has been a smart plan”
“These moments are a good reason to consider a process integration because the business is more affected. It is a moment that you have to consider the strategy for years to come when the worst happens “, explains in the first instance Santiago Carbó, who believes that the entity that results from this merger “will gain in competitiveness and it will be stronger in the face of what is to come in the financial market revolution. “
Emilio Ontiveros, President of Analistas Financieros, sees “logical” that equity markets have received willingly this merger. Likewise, Ontiveros highlighted the importance that the resulting entity will have on the Madrid-Barcelona-Valencia axis. “There has been a decision and a smart plan,” he adds.
Regarding the possibility that this merger will open a new dance of this type of operation, Carbó believes that if this has occurred, it is that “there is a favorable environment” and now others could follow.
Likewise, the professor in economics and Director of Financial Studies at Funcas believes that this merger will have a impact in the template, because they are usually generatedr “overlaps”.