Bank Leadership Scrutinizes Tax Policy and Market Pressures
The chief executive of Banco Sabadell, Joseph Oliu, commented this Monday on a tax policy under discussion in Congress, calling the proposal clearly discriminatory against the banking sector. He suggested that the government should engage the industry in constructive dialogue and consider alternative measures that comply with legal standards and fairness. Oliu noted that the sector can respond to the moment with a disciplined approach, even when the economy remains challenging, and emphasized the importance of a measured process that allows for multiple rounds of discussion before any final decisions are enacted.
During the bank’s annual gathering of advisory council members, Oliu clarified that Sabadell would not apply tax burden across all assets, focusing instead on those assets where interest margins along with commissions exceeded €800 million in 2019. He argued that a broad, indiscriminate tax would unfairly discriminate not only against the shareholders of Sabadell but also against other banks in similar situations, and might create uneven competition within the sector.
Oliu pointed out that the proposed tax would, in effect, penalize operating banks that serve small and medium-sized enterprises. He noted that major lenders with substantial overseas activity, such as Santander and BBVA, tend to reveal most of their results abroad, which raises questions about the equity and efficiency of applying a uniform national tax to a diverse set of banks and business models. The manager highlighted that the tax design should consider the differential impact on domestic banks whose client bases include a large SME segment, many of which were severely stretched by the pandemic and its aftermath.
Balancing Virtue and Revenue
Oliu expressed a clear understanding of the government’s objective: to balance public accounts while generating solid tax revenues. He acknowledged the importance of budgetary stability, but urged that measures also reflect the vulnerability inflation can create among Spanish households. He recalled Sabadell’s role in 2015 through sogeviso, a firm that played a crucial part during the pandemic by assisting clients facing mortgage difficulties. The intent was to illustrate how financial institutions can contribute responsibly during tough times and how such responsibilities should be echoed in any fiscal framework that affects the banking sector.
The executive reiterated that Sabadell is actively implementing internal safeguards to address potential vulnerabilities that could drive an inflationary spiral, even if those scenarios have not materialized yet. He stressed that the path forward should emphasize safeguarding customers who are most exposed to rate volatility and payment shocks, particularly in the context of variable-rate mortgages whose increases have been capped in some proposals. The overarching message was not resistance to policy, but a call for a more balanced approach that safeguards both financial stability and consumer welfare.
Along similar lines, César González-Bueno, the bank’s CEO, called the new tax proposal temporary and non-distorting to competition. He underscored that Sabadell already contributed significantly to public finances, citing a tax payment of around €800 million in the previous year alongside a reported profit of about €530 million. He contended that a temporary measure, properly scoped and time-limited, could achieve revenue goals without creating long-term distortions in the market or dampening competition among lenders.
Looking ahead, the bank indicated that the rate environment is likely to produce net gains that could offset inflationary pressure on earnings. The leadership suggested that the overall impact might skew toward favorable headwinds rather than persistent headwinds, given a more predictable rate trajectory and continued careful risk management. In a leadership transition, Michael Montes will retire, and Sonia Quirús will assume responsibility for human resources while Jorge Rodríguez steps into the role of head of private banking.
These changes come as Sabadell seeks to maintain a steady course through a period of fiscal policy uncertainty and evolving regulatory expectations. The discussions reflect a broader debate across the financial sector about how best to balance public revenue needs with the long-term health of banks that serve local communities and SMEs. The emphasis remains on responsible governance, transparent dialogue with policymakers, and a commitment to supporting customers through shifting economic conditions. Citations: internal policy briefings and public statements from Sabadell executives summarized for policy and financial analysis.