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How to recover profitability in the banking sector?

Banking profitability

The Valencian Institute for Economic Research holds – together with the University of Valencia – its seventh Conference on the Spanish Banking Sector, in the context of its twenty-fifth anniversary.

31 may 2016

The financial crisis is nearing its ninth anniversary and Spanish banks have entered a new phase in their complicated recovery. The firms have restructured their accounts, they’ve adjusted themselves to the requirements of the Single Supervisory Mechanism and, finally, most have erased the red numbers from their balance. Yet ROE (return on equity) is still below the cost of attracting capital, despite beating the European average.

This result proves the complexity of the current economic and political situation (negative rates, default rates still quite high, a possible Brexit, volatility in the oil market, the aforementioned supervisory mechanism put in place by the ECB and EBA, and the restrictions it puts on banks). The sector is still looking for an answer to the big question: what is the business model (or the models) that will rebuild real profit levels, without triggering a new risk situation?

Next Wednesday, June 8, researchers and experts of the financial sector will hold a debate on the model to follow and explain every step the banking sector is taking to end the recovery process and bring stability back to the financial system. Entitled «Recovering profits: Risk factors», the IVIE holds its VII Conference on the Spanish Banking Sector at the headquarters of the University-Business Foundation ADEIT (Plaza Virgen de la Paz, 3, Valencia), with the collaboration of the University of Valencia.

The event will be centred around two roundtables holding experts of the financial sector. The first will hold Joaquín Maudos, professor of the Master’s Degree in Banking and Quantitative Finance through the University of Valencia and Joint-Director of Research of the IVIE, and Santiago Carbó, Tenured Lecturer of Economics and Finance at Bangor University (Wales) and also a teacher of the Master. The pair will reflect on how the current situation unfolded and the challenges currently facing Spanish banks.

In the second session, José Sevilla and Jaime Guardiola, Delegate Advisors of Bankia and Banco Sabadell, respectively, will offer their separate views on the business model(s) that will take the banking sector to a calmer situation.

Finally, closing the event will be the Valencian Head of Treasury and Public Administrations and ex-Dean of the Faculty of Economics of the University of Valencia, Vicent Soler.

Entry to the conference is free but previous registration is required (seats are limited), which can be done here.

 
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