A distinguishing feature of Spanish banks is their geographical diversification. This has been reflected in recurring profitability and an increasing weight of international results over domestic ones in the case of large entities.
Latin America represents a quarter of the geographical exposure of Spanish banks, under a subsidiary model where, in most cases, they are independent from a capital and liquidity standpoint. This allows them to carry out their activities autonomously from the parent company, with greater knowledge of local markets and an offering of products and services adapted to the specific needs of their clients in each region.
In this way, the role played by Spanish banks in the countries of the region has been decisive for greater financial inclusion, and for revitalizing and stabilizing local banking systems. This is the main conclusion of a recent study conducted by the Spanish Institute of Banking and Finance, which provides a historical analysis and an outlook for the sector.
The study also highlights the social commitment of Spanish banks in the region, from educational and social projects to microcredits focused on the most vulnerable population to combat long-term problems of poverty and social exclusion. It thus speaks of their contribution to ‘bancarization’, understood as the use that society makes of banking products and services.
We can also use this term to refer to the intensity and impact that the banking network, based on the different existing channels, has on the economy and even on the degree of development of the country’s financial system. This is because the activity of banks is part of all important economic decisions for families and businesses. There is no doubt that a society without finance is an impoverished society.
José Luis Martínez Campuzano, spokesperson for the Spanish Banking Association
