The Portuguese Banking Association admits support the nationalization of New Bank if the state assume costs. “We would not have anything to object. I see is a lot of trouble that can happen,” says the president of APB, Faria de Oliveira, an interview with “Business Journal”. A scenario that Prime Minister himself does not exclude .
The bank currently led by Eduardo Stock da Cunha stay in the public sphere is a “possibility” in Faria de Oliveira words, although “many doubts” that to happen in the current table.
“Even though bridge bank to be nationalized had to have a resolution. This brings problems. unless there is a political negotiation and that, for reasons of national interest, is possible an waiver (exemption on the sale obligation) “
About the bank could support, the president of APB says it was made in England . “The state nationalized banks, is seeking to restructure them and monetize them to sell.” As the bridge bank currently has a limit of five years, “if there were bargaining power,” it was possibly a possibility. “
As for the Caixa Geral de Depósitos, which needs to strengthen capital , the leader of APB maintains that the State inject money in the public bank. This despite the injection of public money in a bank to be considered aid State, which goes against the European Union’s Competition Directorate-General, according to a policy resolution and bank recovery, transposed into national law last year. As this happens, and it goes against that rule, the immediate consequence is the bank resolution. that’s what, moreover, happened to Banif recently.
Oliveira de Faria supports adjustments to the model of supervision, including precisely the output of banking resolution of the Bank of Portugal. in the same interview, comes out in defense of the governor Carlos Costa, being “perplexed” by the public treatment given to it. The purpose of the New Bank, responsible for supervising the bank indicated last Friday that if the institution is not sold until 2017 there will be more redundancies , and, for now , the collective redundancies does not reach 100 employees.
In favor of diversity and competition in the financial sector, the president of the APB considered at the same time, there must be consolidation in banking. As for bad debt, “be accelerated” their recovery.
Since the requirement for banks to impose negative rates in credit agreements (because of Euribor are negative) and also the prohibition to apply bank charges are, in his opinion, measures of “populist character.” The bank “is not a public service,” he argues in the same interview to Business.
Go further, warning that such measures “brutally affect the profitability of banks,” which may, in drag, bring bad consequences for the country, criticizing the “extreme consumer protection”.
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