Mixed feelings in the banking sector due to the appointment of José Luis Escriva as the new governor of the Bank of Spain (BdE). Banking professionals fear his most aggressive and controversial public appearance and, above all, that Pedro Sanchez uses him as a political pawn under the orders of the government at the head of an institution which must be governed by independence.
However, they give a vote of confidence on his technical profile, knowing that the current Minister of Digital Transformation and Civil Service worked in the 90s and the first decade of the 2000s at the Bank of Spain itself, as well as at the European Central Bank (ECB) or BBVA.
Opinions on his nomination are of all colours, especially when the Executive did not have the support of the PP for his appointment and, therefore, it is a figure questioned for his jump from one ministry and for not having the necessary consensus to raise Pablo Hernandez de Cos. Even though almost all of the bankers interviewed in this way – who requested anonymity – agree that ultimately, “the blood will not reach the river” for the banking sector supervised by the BdE.
“Escrivá is a serious person. I don’t think it will have a major impact,” says the banker of an entity focused on wealthy people positively. However, he sows doubt by acknowledging that “I don’t know how long it will last either.”
A banker from a general banking entity is of the same opinion: “Obviously, the independence of the BdE could be called into question”, even if “I do not think that this will influence the banking sector much”.
Takeover bid for Sabadell or bank tax
A major investment banker recalls that “the best thing for this position would be an independent person”, while another private banker already believes that Escrivá “will not have anything independent and that there are very important decisions that are entrusted to the Bank of Spain”.
One of them, for example, is to provide the ECB with its assessment of BBVA’s hostile takeover bid for Banco Sabadell, which is the banking institution that the BdE is holding on to and which is responsible for approving or rejecting the operation.
Headquarters of BBVA and Banco Sabadell.
A banker with large fortunes in an international entity present in our country is more negative about this. “It will not be Escrivá who will act, it will be Sánchez. And so “This will allow you to bring the banks under control if you deem it necessary.”This veteran does not rule out indirect blackmail through the BdE and Escrivá on the part of Sánchez, who could ask for the support of the banking sector for his next measures under the veiled threat of a regulation contrary to his interests if he does not obtain it.
It should be recalled that relations between banks and the government have deteriorated due to the temporary bank taxThe rumor continues to circulate in financial circles that the coalition government between the PSOE and Sumar could make this tax permanent. solidarity to the banks.
However, Escrivá’s technical background is what protects him from a worse reception in the sector. The new governor of the Bank of Spain was deputy director of the Department of Monetary and Financial Studies and head of the monetary research unit at the BdE, as well as head of the monetary policy division of the ECB. In 2004, he joined private companies as chief economist and director of the BBVA research department. He thus knows the ins and outs of both sides of the financial sector.
His technical career, although always surrounded by controversy, is completed by his time at the Independent Authority for Fiscal Responsibility (AiReF), of which he was president between 2014 and 2020 and elected by the Popular Party.
