Thursday, July 5, 2012
Francisco Gonzalez, chairman and CEO of BBVA, said at a press conference held yesterday in Taipei, “BBVA has weathered the crisis quite well without public assistance,” adding that the “crisis” is more of a political nature “confined to the position of Germany” rather than an economic one.
With regard to the economic condition of Spain, Gonzalez responded to reporters by saying that the Spanish government is addressing fiscal problems by making changes to the labor market while also cutting back on public spending, adding that he believes the country is moving in the “right direction.”
When asked whether global sentiment over Spanish banks has improved, the CEO chuckled and replied, “no.” But he also said quite confidently that the financial sector of Spain will “clear up 100 percent” in the near future.
“Those who are betting against the euro are making a huge, huge mistake.”
The CEO said he believes that many people may not have understood the significance of the decisions taken during the recent four-nation talks. Some of the more important changes include the creation of a sole bank supervisory body across Europe, allowing lending directly to banks (rather than governments) and provisions paving the way for the sale of euro debt on secondary markets. Regarding Spain's recent banking crisis, Gonzalez argued that “banks in the hands of the government are a big mistake ... (they) need to be privatized as soon as possible.”
When asked if the crisis had affected BBVA's expansion plans, the CEO replied that BBVA is the most profitable bank in Spain and that it will continue to expand as planned.
Taiwan forms part of a group of emerging economies that BBVA identifies as “eagle countries.” Turkey, India, Mexico, Brazil and China also form part of the 10-country high-flyer list where Gonzalez expects 50 percent of world growth to occur over the next decade.
With the opening of its new branch, corporate clients in Taiwan will be able to integrate better with other markets, especially in Latin America, said Gonzalez.
Posted by China Club (Spain) at 12:30 AM