fbpx
Log in

Login to your account

Username *
Password *
Remember Me

Create an account

Fields marked with an asterisk (*) are required.
Name *
Username *
Password *
Verify password *
Email *
Verify email *
Captcha *

Santander Bank prepares new structure for next crisis

santander2Santander is dividing its banking empire into nine autonomous groups, with Portugal being one of them.

Preparing for the next crisis, the Spanish bank, run by Ana Botin, aims to create a more robust geographical structure should one of the new regional businesses suffer insolvency.

These legally autonomous divisions will deal with the controlling central banking regulators in their areas and wqill work with them to devise any necessary ‘resolution’ without affecting the overall business.

Each new ‘resolution group’ will have to meet specific criteria, including capital ratios, should have enough resources to keep itself out of trouble and is under no obligation to bail out other of the regional Santander businesses.

"There are no legal commitments that imply financial support," reads a company notice, adding that inter-company loans will be at the applicable market rates.

The group in Spain will be the largest one, with assets of €651 billion.

In order of decreasing assets, the remaining units will be: United Kingdom (€361 billion), Brazil (€162 billion), the United States (€114 billion), Mexico (€58 billion), Chile (€50 billion), Portugal (€48 billion), Poland (€32 billion) and Argentina (€13 billion).

The Spanish group also has the highest solvency, with a capital ratio of 24.12% compared to the Portuguese business at 18%.

Pin It

Comments  

+4 #9 dw 2018-06-22 11:27
Banking regulation in the UK failed spectacularly in 2008 and was revealed to be a sham. Nothing significant has changed since. The banks are planning how to maximise profit from the next crash.
+5 #8 nogin the nog 2018-06-21 19:41
Quoting Darcy:
R Thomas,
While you were being been smug about banking in other parts of Europe and spelling out that Portugal was still experiencing difficulties with borrowing as a result of the financial crisis of 2007, let me remind you that Britain also suffered huge loses as the British banks had to be bailed out to the sum of 500 billion pounds and British citizen, particularly on Northern Britain have been suffering as a result of this ever since.

Hmm.
You have got that right Darcy. Food banks are over whelmed in northern cities. Also unknown to many are the families living in
in caravans on year round caravan parks.
Its a bloody disgrace. :cry:
+6 #7 Darcy 2018-06-21 17:09
R Thomas,
While you were being been smug about banking in other parts of Europe and spelling out that Portugal was still experiencing difficulties with borrowing as a result of the financial crisis of 2007, let me remind you that Britain also suffered huge loses as the British banks had to be bailed out to the sum of 500 billion pounds and British citizen, particularly on Northern Britain have been suffering as a result of this ever since.
+1 #6 nogin the nog 2018-06-21 15:05
hmm
Interest rates for savers has been held at next to nothing for more than a decade. In fact we are not out of the last crisis but are just waiting for the next, Santander know this
and are limiting there potential exposure. The calm before the storm comes to mind. :-*
-5 #5 Roger Thomas 2018-06-21 07:58
Strange how the north Europeans have no interest in taking over the unrecoverable debts of the apparently equally highly regulated south European Banks! Why?Presumably Denby has always been safely banked outside of Portugal, knowing no one who suffered when all the Portuguese based Banks crashed in the last few years. So knows he will get at least 100,000 euros back. Down south, could a Bank run be covered by that Bank alone? Or would the already highly indebted sovereign have to further load the Portuguese tax payer?
+5 #4 Denby 2018-06-20 23:54
Roger Thomas,
I think you should be aware that all banks in the European Union are regulated by the ECB, European Central Bank. So the highly regulated banks in the UK are regulated to the same standard as the banks in Portugal.
-4 #3 Roger Thomas 2018-06-20 17:59
The link given is for the UK banks now owned by Santander and regulated by the British Financial Authorities, amongst the most highly regarded in the world. The more observant will have realised that elsewhere in Santanders international banking portfolio are countries having lower or untrustworthy regulatory standards such as in Portugal. So, in an emergency and knowing from BES that the Portuguese Central Bank will abandon foreign investors to protect its elite own, requiring the parent Spanish HQ to ring fence its best assets.
-2 #2 Sunburnt 2018-06-20 16:53
Thank you for the link Mr R Thomas, but i couldn't see the names Souros or Rothchilds, i found other links on youtube, its scary stuff to see, the winners of the the world are poor people, no money, no honey, no worries.
-2 #1 Roger Thomas 2018-06-20 09:41
As this article tells us .... It pays to know exactly who owns the banks and building societies you hold savings with in order to ensure your funds are protected in the event of another financial collapse.
https://www.lovemoney.com/news/15729/who-owns-your-bank-or-building-society
Bloomberg today explains what lies behind Santander's move. The nightmare scenario of sovereign debt triggering Eurowide collapse. In that the ECB enthusiastically encouraged the PIGS (Portugal, Italy, Greece and Spain) central and national banks to buy their own countries (sovereign) debt. To avoid the embarrassment of not getting interest elsewhere. So, if borrowing rates rise too far, as Italy's have done recently, it is not commercially viable for the Bank to be servicing their own countries debt. Hence German twitchiness about rescuing entire EU countries - Portugal being the 3rd most indebted and the public debt still rising every month.

You must be a registered user to make comments.
Please register here to post your comments.