José Luis Escrivá, governor of the Banco de España, expressed the need for the new tax on the bank not to penalize certain trading activities that were «algo más arriesgadas». In his speech to the Economic Committee of Congress, Escrivá emphasized the importance of ensuring equitable access to credit, both for small and medium-sized enterprises (Pymes) and for large companies.
The governor made these statements after the approval of a tax reform that introduces a type of progressive tax, which can reach up to 7%, on interest margins and net commissions in the banking sector. He wrote below that the European Central Bank (ECB) is responsible for opining on this type of debt, as it already was in November 2022, and that the Spanish Bank has not taken any action on this assumption.
In your speech, you will write that the design of the amount must be carefully considered who is burdened, how it is done and how the wealth generated is redistributed. Having said this, it is essential to avoid the tax having “unintended effects” that could negatively influence the sector.
The governor also missed the importance of not compromising the most arriesgadas activities, such as the credit intended for the Pymes, which faced mayors with difficulties in accessing financing compared to large businesses. I would like to point out that, given the risk, the Pymes require a special apoyo.
In taking up the suggestion of the supplies that the banks hold to cover risks, you will write that the new amount design will have to take these reserves into account, regardless of the general collection capacity. This is crucial to ensure that impotence does not impact the ability of banks to operate effectively and continue to support the most vulnerable sectors.
Furthermore, he noted the need to be cautious in the progression of this new problem, especially in relation to inversions in Spanish banking entities and financial technology. I propose that the attack of the appeal be based on a scale that does not damage the institutions operating in the sectors of greatest risk.
On another topic, when asked about possible concentration in the banking sector, particularly in relation to BBVA's takeover bid for Sabadell, Escrivá took a cautious approach. He stated that the analysis of skills in Spain is the responsibility of the CNMC and the European Commission for the European level.
The governor declared that the Bank of Spain is dedicated to copying and disseminating the necessary information to the competent national and European authorities, but explained that it is complicated to emit clear judgments about the competence when other organisms are responsible for these analyses.
As the regulatory and fiscal landscape of the banking sector evolves, Escrivá's interventions highlight the importance of a balanced approach that promotes financial stability without compromising access to credit and the growth of businesses, both large and small.
