Few institutions in Spain have been recognized with as much power as the Spanish Banking Association (AEB), which brings together all Spanish and foreign banks operating in our country. In turn, the AEB belongs to the International Banking Federation and is a highly influential member of the CEOE. <\/p>\n
Its first president and driving force in 1977 was Rafael Termes, at a time when financial Spain belonged to the “big seven” (Banesto, Central, Hispano Americano, Banco Bilbao, Vizcaya, Santander, and Popular). These were times when financial entities sought ways to connect with society, with newly legalized political parties, and with trade unions. <\/p>\n
Termes managed to unite the efforts of those large banks, setting aside the personalism of financial figures as prominent as Aguirre Gonzalo, Esc\u00e1mez, Boada, Asia\u00edn, Pedro de Toledo, Bot\u00edn, and Valls.<\/p>\n
Times of greater competition, social prominence, and demands for communication and transparency were approaching, and the Superior Banking Council, which until then had unified banking interests, was no longer fit for those tasks. Termes, who remained president of the AEB for thirteen years, was followed by Jos\u00e9 Lu\u00eds Leal (1990-2006) and Miguel Mart\u00edn (2006-2014). Since March 2014, the association, which now brings together 72 members, has been chaired by Jos\u00e9 Mar\u00eda Rold\u00e1n. <\/p>\n
The AEB is responsible, on behalf of its members, for liaising with the public administration, political parties, parliamentary groups, trade unions, and the media to address matters affecting the interests of the banking sector. It is also responsible for distributing communications from the Public Administration, economic authorities, or the Bank of Spain to its members regarding regulations, requests for collaboration, and recommendations for action. <\/p>\n
One of its most important activities is negotiating the collective bargaining agreement with union representatives. At the same time, it conducts legal studies of interest to its members and prepares reports on the economic situation and the state of financial markets at a time when only large financial entities can afford such studies. <\/p>\n
The University College of Financial Studies (CUNEF) depends on the AEB through its foundation; it is an institution that develops various academic training courses in financial and banking matters.<\/p>\n
JOS\u00c9 MAR\u00cdA ROLD\u00c1N, PRESIDENT OF THE AEB<\/strong><\/p>\n “After the previous crisis, entities realized that a different type of banking had to be done”<\/p>\n Rafael Termes, <\/strong>the first president of the AEB, always maintained that it was beneficial for banks to have customers with a good financial culture. Now the AEB promotes financial education courses. Did the banking sector not take advantage of customers’ lack of financial culture for a time?<\/strong><\/p>\n <\/strong>I do not believe that was the case at all. A relationship of trust has always existed between the customer and their bank. Otherwise, how would people have entrusted them with their savings for so long? It is true that people previously had little financial culture, but they were very prudent when it came to taking on debt and investing their savings. There was a kind of folk wisdom that said nobody gives you something for nothing. <\/p>\n All of that has changed radically. In particular, following the last crisis, entities realized they had to practice a different kind of banking. More transparent, closer to the customer, with all types of channels\u2014especially digital ones\u2014to make life easier for consumers. This is a massive transformation that Spanish banks\u2014and many European ones as well\u2014are undergoing to be part of this society, which has also changed radically, and to place themselves at its service. It hasn’t really been difficult for our financial entities to “change their mindset” because customer service is the primary and ultimate reason for their existence in the nature of commercial banking. The interests of the bank and the customer must be the same; if not, the entity is destined to disappear. The first line of defense to avoid problems regarding codes of conduct is to have demanding customers who are well-versed in finance. <\/p>\n How do you see the Spanish banking map three years from now <\/strong>following the Caixa\/Bankia operation?<\/strong><\/p>\n It will be a sector where current trends\u2014consolidation, digitalization, and support for sustainability\u2014will have largely materialized. There will probably be fewer traditional banking entities (but many more online operators) because in an industry like this, where strong economies of scale exist, mergers are one of the few ways to achieve efficiency and profitability gains. It is not automatic, as integrations have their costs and risks, but it is obvious that they have been fundamental in the recent history of Spanish banking. Hopefully, in three years, we will also see a large European bank operating as such, as that would be proof that the banking union has become effective, including for the consumer. <\/p>\n With more financial culture, can it be made easier for customers to understand that there are services for which it is <\/strong>necessary to charge?<\/strong><\/p>\n I trust so, and I never tire of repeating that the price of the service must be separate from the price of the product. I have never liked the idea of subsuming the recovery of the cost of services provided within the interest margin: it is opaque and leads to cross-subsidies between customers. Making those costs explicit is what allows us to know what we are paying and why we are paying it. It is much more transparent and allows for comparability. It also prevents the small customer from subsidizing the large one. We try to get this message across to consumers, but the truth is that fees cause great pushback in a society that has been accustomed for years to not paying them. <\/p>\n Why do European and Spanish justice systems seem to have <\/strong>targeted certain practices of <\/strong>financial entities in recent years? Were things done wrong in the sector?<\/strong><\/p>\n <\/strong>It is true that, once the crisis had already begun, some products were marketed in a deficient and non-transparent manner because some entities found themselves in a dead end. On the other hand, banking in Spain has been the scapegoat for all the sins that led to the 2008 crisis: nobody helped the banks. In the last twelve years, our banks have made a great effort to approach the customer in a different way. It is necessary to recognize this work. Criticism is necessary, but so is praise, because otherwise we would be telling our entities that their effort to improve is not worth it. <\/p>\n JAVIER RODRIGUEZ PELLITERO<\/strong><\/p>\n What does the lobbying work of the AEB consist of as a representative of a significant part of the <\/strong>Spanish banking sector?<\/strong><\/p>\n <\/strong>The AEB assumes the representation of its member banks before various authorities and public administrations, gathering and conveying their position regarding different initiatives from the authorities, mainly of a regulatory nature, although also of other kinds, such as collaboration agreements with public administrations.<\/p>\n Will the COVID-19 crisis imply changes for the Association?<\/strong><\/p>\n <\/strong>The situation generated by COVID has led to a period of very intense work for the association in collaboration with our entities, which have dedicated themselves, for the benefit of families and businesses, to actions in collaboration with the authorities (ICO lines, legal moratoriums, advances on benefits) and many of their own sectoral initiatives (private moratoriums, temporary removal of certain fees) and individual ones (donations of funds and medical supplies). We are very satisfied because society has perceived the level of commitment of the banks to it and its customers. <\/p>\n How does the AEB carry out its work of representing all its members equally when they are so heterogeneous?<\/strong><\/p>\n <\/strong>The difference in size between entities does not pose a particular difficulty for the development of the AEB’s work, since all member banks are engaged in the same activity. Therefore, the impact and reactions to potential initiatives from public authorities are similar, although their magnitude differs depending on the size of the entity. <\/p>\n ROC\u00cdO S\u00c1NCHEZ BARRIOS<\/strong><\/p>\n “Digitalization has been as if a door that was ajar has now swung wide open”<\/strong><\/p>\n Did this crisis catch the banking sector at a bad time?<\/strong><\/p>\n Banking has been subject to strong regulatory reform in response to the 2008 financial crisis. This resulted in a strengthening of capital and liquidity levels and will surely contribute to risks from the deteriorating situation being better covered. Furthermore, the decisive and agile response of the authorities, and in particular the ECB, helps to dissipate past risks of financial instability. <\/p>\n How will the crisis caused by Covid-19 affect its digital transformation process?<\/strong><\/p>\n The Covid-19 crisis has accelerated the process of digitalization in society. This applies to the use that banking customers have made of digital banking channels. In some cases, customers have used these channels for the first time, and in others, they have simply deepened their use of them. It is as if a door that was ajar has now swung wide open. <\/p>\n <\/strong>Does the potential boost to digital transformation lead the sector to further reduce the number of employees and branches?<\/strong><\/p>\n Digitalization is not a sectoral process but a generalized one. Many synergies can occur between sectors that we, for our part, are encouraging. For example, we are advocating for a regulated framework for data exchange, including between companies from different sectors. The first beneficiary of such a framework will be the customer, because the service offering could be highly personalized and made more effective. The adjustment in branches and workers is linked to the digital transformation process. It is part of economic modernization, and the important thing is to manage it at the most appropriate pace. <\/p>\n <\/strong>Is Europe prepared for the problems that the weakest banks may pose?<\/strong><\/p>\n The recession will have an impact on the quality of bank balance sheets, forcing provisions that will absorb margins, without ruling out that they may be insufficient. It will be key to know if these are isolated problems in the most fragile entities or if they could have a systemic effect. One of the great advances after the previous crisis was the design of a European crisis resolution framework, a competent authority, and a community resolution fund. These are tools to be used from a community perspective. <\/p>\n JOS\u00c9 LUIS MART\u00cdNEZ CAMPUZANO<\/strong><\/p>\n “Citizens are aware of the effort the banking sector is making in Spain during the crisis”<\/strong><\/p>\n The image of the banking sector worldwide was damaged in recent years following the crisis. Does it now have an opportunity to improve it? <\/strong><\/p>\n The health crisis has offered an opportunity for banks to serve citizens, and this will contribute to improving their image. Now, banks are striving to mitigate the negative effects of the pandemic and smooth the path to recovery. Citizens are aware of the effort the banking sector is making so that individuals, the self-employed, SMEs, and larger companies can keep going, despite the effects of the pandemic and the state of alarm. <\/p>\n <\/strong>In addition to communicating well, what does Spanish banking need to be more respected?<\/strong><\/p>\n It is a matter of time before the work of the banks is recognized. For now, consumers trust their respective entities, although as a sector, the perception is still not as good as it should be. To achieve this, it is only necessary to work long-term with the customer’s interest in mind, improving the range of products and services and doing so in an easy and transparent way. It is also important for banks to have clear and stable rules over time to carry out their work. <\/p>\n Would greater financial education in Spain help the work done by banks to be held in higher regard?<\/strong><\/p>\n The AEB has been making a great effort for some years to improve financial education through the “Tus Finanzas. Tu Futuro” (Your Finances. Your Future) program, which has a long-term vocation. However, it is necessary for all of society to get involved in promoting financial education among children; the sooner it begins, the better. <\/p>\n Do you consider that Spanish banks have given the necessary importance to the task of communicating with society?<\/strong><\/p>\n I can guarantee that all entities, including the AEB, have dedicated a lot of effort to improving communication with society. We are using all types of media, from the most traditional, such as the written press, radio, and television, to social networks, where we are very active. <\/p>\n <\/strong>JUAN CARLOS DELRIEU ALCARAZ<\/strong><\/p>\n “Spanish banking entities are dedicated to putting sustainable finance into practice”<\/strong><\/p>\n Will the Covid-19 crisis delay the process toward a sustainable economy and make it more difficult for the financial sector in its important role of capturing resources for that purpose?<\/strong><\/p>\n Sustainable finance is going to play a transcendental role in the economic recovery, which we must make compatible with the reconstruction of a world that is more respectful of the environment. The worst thing that could happen is that we relegate this objective to the background for fear that society might misinterpret our order of priorities. Furthermore, to the environmental sensitivity caused by the risks derived from climate change, we must now add a greater focus on social issues. The momentum<\/em> is now. <\/p>\n <\/strong>Do you believe that Spanish banks are convinced and committed to the need to bet on sustainable finance?<\/strong><\/p>\n Our entities are fully dedicated to putting this concept of sustainable finance into practice.<\/p>\n This commitment translates into initiatives such as the signing of the Principles for Responsible Banking and the Climate Action Pact, which the Spanish banking sector joined within the framework of COP25 in December 2019. Both agreements represent a firm commitment to align with the 2030 Agenda and the Paris Agreement with specific and public objectives. The creation of the Center for Sustainable and Responsible Finance, FinResp, is another initiative that should lead the way for change. <\/p>\n