head Caixabank, José Ignacio Goirigolzarrichose to compete face-to-face withfintech‘ and ‘big tech’ (big tech) that exceeds its supply traditional financial products during the round table banking in the framework of 38 Cercle d’Economia came togetherHe was outspoken and thought it wrong for the bank to pursue “defensive strategies” against competition.
at a round table with fernando restoy, Head of the Financial Stability Institute, BIS; And José VinalsStandard Chartered president Goirigolzarri said: digitization taught us that the boundary between industries is messy”. And an industry with such a large customer base “does not need to be limited to traditional financial products”. The proposal will be considered.
In any case, he underlined that in the short term “a large competitive field will be established in payment instruments, this is not due to commissions received or not received, but to ownership of the property. systems”. Goirigolzarri recalled that in addition to its substantial client base, traditional banking has enough tools to compete with big tech companies.
He complained about his lack throughout his speech. “third party” of the banking unionIt is “unclear” who is the lender of last resort to provide liquidity to a bank with a joint deposit fund that is in turbulence in Europe.
joint deposit guarantee fund
According to him, this is one of two elements that the CaixaBank president pointed out to be missing in the architecture of the banking union. joint deposit guarantee fund.
Regarding the differences in stock prices between US and European banks, Goirigolzarri cited negative interest rates in Europe as the reason; investors see European regulation as “more complex and less regulated” and the fragmentation of the European banking market. He reminded that the main financial institution in the USA has a market value equivalent to the sum of the five largest financial institutions in Europe.
“We compare a single market with a market that we call unique but is not, because it’s extraordinarily fragmented.” The difference in price means a different capacity to attract capital.
Resoy, for his part, argued that: Europe needs more deposit coverage to support financial stability and that “political difficulties disappear when emergencies are identified”. He noted that the current banking regulation “doesn’t act with sufficient agility”, but stressed positively that in the European area, regulations follow international standards.
And Viñals agreed with Restoy about the lack of agility it has also ensured that banks must ‘work on cost collateral’ in order to compete with ‘big technology’ companies. He analyzed that companies with global involvement are “in a vulnerable position because they have to overcome uncertainty” because, he says, tensions have risen in the geopolitical realm.