deputy governor of bank of spainMargarita Delgado warns that financial institutions should continue to monitor their credit quality and take measures that will allow them to reduce their credit risk in the event of a tightening of financing conditions, with greater impact on more indebted companies and vulnerable households. allow it to be managed adequately. ,
During the institutional opening of the ING Corporate Headquarters in Madrid, lieutenant governor The U.S. has acknowledged that Russia’s invasion of Ukraine is a new unrest that adds uncertainty to the recovery with potential consequences for economic activity and puts additional pressure on inflation.
While he has highlighted that Spanish banks have “minimal” financial exposure to Ukraine and Russia and that the commercial channel of the Spanish economy is “not relevant”, the deputy governor warned that the indirect effects could be significant, especially through the channel reliable and Uncertainty with effects on the economy.
Delgado acknowledges that the European and Spanish banking sectors are recovering to the level of unrest it represents from a state of war recovery and resilience. cost effectiveness With stability in pre-pandemic and solvency levels.
However, he stressed that there are still regions in Spain that have not fully returned to their activity levels after the health crisis or are being overburdened by energy and raw material shocks, for which he has again The message is that, “has been delivered. Tightening financing conditions with greater impact on more indebted companies and households.” To be embroiled in a blow or accidentFinancial institutions should continue to monitor their credit quality and take measures that allow them to properly manage their credit risk.
In this context, the Deputy Governor mentioned two structural challenges that banking was already facing before the pandemic, namely the concept of profitability/efficiency, the challenges of digitization and competition from new actors and Change Towards making the economic model more sustainable.
The extent to which the banking business is developing is happening so fast that it is considered as one of the biggest challenges facing the sector
“to the extent banking business It is so fast that it is currently considered one of the biggest challenges facing the region. To be properly positioned, heads of institutions need to be fully aware of this fact and knowledgeable about the matter to avoid fear of the unknown, thereby avoiding innovations and abandonment of institutions. In a vulnerable position before the rest of the region”, he pointed out.
With regard to the change towards a more sustainable model, Delgado highlighted the role of the financial sector as a channeler of resources in the said process, which is already “assuming a change in risk management, in which factors sustainability They are already entered as an element to take into account ».
“Appropriate climate risk management requires an adequate analysis of how physical and infection risk entities affect the risk profiles. To this end, obtain quality data with sufficient historical depth and based on clear and homogeneous definitions at international level. This is a global risk that must be addressed in a coordinated manner International“, has warned.
Finally, the Deputy Governor of the Bank of Spain concluded by congratulating eng for the new corporate headquarters, which exemplifies the entity’s commitment to “modernity and sustainability; two essential elements to success today.”
Bank of Spain predicts tough financial conditions