Botín warns that the lack of global growth represents the main risk for financial stability

The executive president of Banco Santander, Ana Botín, has placed the lack of growth as the main risk to financial stability that countries face. During his speech at the International Banking Conference, held annually by Santander itself, Botín explained that the global growth forecast of half a point percentage of GDP for the next five years, compared to the previous period, means 20 million fewer jobs and up to 1.4 billion less in taxes collected.

The growth “It is the greatest risk to financial stability that we face,” said Botín, while defending that any strategy to boost economic activity “is not going to happen” without involving the banks. In this sense, the banker has said that “banks are prepared to do more” in order for the European economy to grow, and “we just need you to let us and we will do it.”

During his intervention has also influenced excess regulation in Europe that slows growth and imposes high capital requirements on banks, which subtracts resources to be used to lend to companies and families. He has stated that a “strong economy in Europe needs strong banks” and that banking entities are there to help make Europe stronger.

Botín has said that Europe needs “smart regulation” and improvements in productivity, and has stated that only 20% of what the Draghi Report recommended has been done, but that is not enough. He has indicated that the competitiveness in Europe is worsening and the difference with the United States it is expanding in terms of regulation, since compared to 13,000 new regulations in Europe in the last six years in the United States there have been 3,500. Ana Botín has said that the regulation “kills innovation” and if companies are not allowed to innovate, “we will not believe.”

He has stated that deregulation in Europe “is not happening” and that the European growth model is failing, something that not only she says, but also Mario Draghi, who has stated that a year after his report the EU is worse. Botín has insisted on the need for “intelligent regulation”, that does not mean going back to 15 years ago, but in thinking about what the economy and the financial system need today. He has stated that banks want to be more part of the solution and do more, and “we need them to let us do more.”

Botín has added that the European banks are doing their job “and quite well”, with mortgages at rates below those at which the Treasury borrows, and at the same time generate a good profitability, of 40 basis points per above the treasury bonds of the countries. He has indicated that every time they “mess with the banks” we must remember that they offer financing at a very good price and profitability for shareholders, with European banks being more efficient than North American ones.

He has also commented, regarding the comments that the banks They earn a lot and we have to put more taxes on themthat if the bank tax rate in Europe were at the level of the United States, 500 billion euros of borrowing capacity would be freed up. Furthermore, he has pointed out that the difference between the capital required in Europe and the United States will widen in 3.5 billion in the coming years, and has explained that if it were At the same level, 14 million more mortgages and 87 million loans could be given to SMEs in Europe in three years.

Botín has welcomed the review of EU banking rules, which add 95,000 pages – one hundred times ‘Don Quixote’ and 50 times the Bible –and added that it has to be ambitious and make enough progress. “He has arrived “time to make decisions and move faster”said Botín, who recalled that in Europe there are no capital markets as powerful as in the United States, so the role of banks, which are the “plumbers of the economy” on the continent, is very important.