Senior representatives from the national and international banking sector met today in Madrid at an event organized by the Spanish Banking Association to address the strategic challenges and priorities of the upcoming European legislative cycle for the 2024–2029 period.
In the context of the Spanish presidency of the EU, the speakers reflected on the current situation and the future of the sector, its role in driving economic and social progress, and its commitment to providing solutions to the major challenges facing society, such as the green and digital transformations of the economy.
For the banking sector to continue deploying its investment and financing capacity to drive economic development, it is necessary for regulation to favor policies that support growth, as highlighted by the speakers at the conference, which was opened by the Deputy Governor of the Bank of Spain, Margarita Delgado.
“Entities must take advantage of the current favorable circumstances to strengthen their provisions and capital, and to make strategic investments in technology and digitalization to face new environments from a more solid position,” the Deputy Governor emphasized.
The CEOs of Santander and BBVA, Héctor Grisi and Onur Genç, respectively, participated in a panel moderated by the president of the AEB, Alejandra Kindelán, in which they highlighted the importance of designing a regulatory framework that favors economic activity and financial stability, and the need to complete the European Banking Union with a single European deposit guarantee fund.
Santander CEO Hector Grisi highlighted that “regulation must allow banks to be profitable and fulfill their fundamental role of supporting economic growth. Financial regulation should consider a balance between financial stability, risk, and growth, correcting the bias that currently drives risk aversion over growth and competitiveness.”
For BBVA CEO Onur Genç, “the solidity and profitability of Spanish banks is good news for the entire economy. A strong and profitable financial system contributes more significantly to social well-being, through the granting of credit, but also by generating employment and through tax payments.”
In this regard, Alejandra Kindelán, president of the AEB, stressed that “Europe in general, and Spain in particular, must undertake major investment processes to decarbonize and digitalize our economies, and the private sector, especially banks, play a key role in these transformations. To this end, we ask governments for stable and predictable regulatory frameworks as a basic condition for attracting investment and capital. A strong and profitable financial sector, such as the Spanish banking sector, will always be at the forefront of driving economic and social progress.”
Subsequently, a round table discussion on the future of banking in Europe took place, moderated by our Director General, María Abascal, alongside Heiner Herkenhoff, CEO of the Association of German Banks (BdB); Maya Atig, CEO of the French Banking Federation (FBF); Giovanni Sabatini, Director General of the Italian Banking Association (ABI); and Eelco Dubbeling, Director General of the Dutch Banking Association (NVB).
The European leaders advocated for a regulatory framework that underpins the strength of banking—so that it continues to fulfill its mission of supporting families and businesses—and that fosters competitiveness on a level playing field.
“European banks play a vital role in enabling Europe’s strategic autonomy and supporting future growth. We must work with policymakers toward a regulatory framework that allows the banking sector to remain resilient, profitable, and competitive, while avoiding limits on banks’ financing capacity, which is indispensable for sustainable transformation and technological advances,” highlighted the CEO of the European Banking Federation (EBF), Wim Mijs, at the closing of the event.
