Carlos Costa says banking sanitation still go to “middle way” – publico

 
         

                 

                         
                     

                 

 
 

The Governor of the Bank of Portugal, Carlos Costa, said today that the banking restructuring process is still “halfway”, but stressed the “great effort” made in recent years by the Portuguese financial institutions.

“this is very different than we had in 2010, although not yet we are at the end of the way. we’re halfway,” released the leader of the supervisor during the conference this and the future of the banking sector, organized by the Portuguese banking Association (APB) and TVI24 in Lisbon.

Carlos Costa has stressed that the restructuring process of banking in Portugal was made in a “gradual” regretting that the country had not had the ability to create a bad bank to accommodate the troubled assets of the bank for six years, as has happened in Ireland and Spain.

“had we accommodation margin terms of public debt to make a transfer of assets to a vehicle, “he said, pointing to the Irish and Spanish examples where the creation of this bad bank has solved a seated most of the problems of the institutions, but with strong impact in public debt.

“in Ireland and Spain there was a significant increase in public debt. In our case, there was no ability to do it. “, Said” As it was incompatible with the trajectory of the Portuguese public debt, the route followed was solving problems gradually. “, Said the governor and said:” Banks Portuguese had a path of stones and the Bank of Portugal as well. “

However, according to the leader of the Bank of Portugal, thanks to the” great effort “made in the last six years,” the banking system is better capitalized. “Carlos Costa pointed to a reduction in costs for the reinforcement of provisions and the positive evolution of credits to deposits ratio to illustrate the improved strength of Portuguese banks.
” But there is much work front, “he said, saying that the main challenge for the sector is to regain profitability.

” the profitability that has to generate capital and attract capital to resolve outstanding issues, “he said, considering it necessary to” alienation assets that penalize the profitability of banks “and having” responsiveness to the challenges of the new European framework. “