Financial markets and monetary economics
The previous year has come to a close, and with it comes reflection on what 2018 brought. However, a look forward to 2019 can also have its advantages.
08 Nov 2018
The European Banking Authority (EBA) has just released its work programme for next year. Understanding the risks and opportunities arising from financial innovation and a better handling of data are some of the priorities the institution has outlined for 2019.
02 Nov 2018
José Manuel González-Páramo, Executive Member of the Board and the Head of Global Economics, Regulation and Public Affairs at BBVA, attended a meeting on the challenges facing the banking industry’s regulatory architecture on an international and local level. He spoke of the importance of further developing the Basel III framework, as well as the need to implement it in a consistent and flexible manner.
02 Oct 2018
Switzerland is the global center of private banking and a country many investors go to in search of diversification. But private banking is much more than that. It involves constant striving to understand the complexity of the financial markets in order to offer customers the best advice possible.
13 Sep 2018
11 Sep 2018
Anne-Joëlle Viguier-Galley is BBVA Compass’ Chief of Equity and Alternative Investments for the bank’s Global Wealth team. She also doubles as the Chief Investment Strategist for BBVA Wealth Solutions, Inc., the bank’s investment adviser affiliate.
06 Sep 2018
Labour’s share of national income has dropped in most of the developed countries and emerging economies in the past few decades. This trend is not common across industries: the share of income accounted for by wages has seen an increase in the service industry, while it has recorded a fall in the other industries.
16 Aug 2018
A traditional debate that ensues when banks are expanding internationally revolves around whether it is preferable to run branch offices or set up subsidiaries. Subsidiaries are associated with decentralized models where banks adapt to the local environment, both from a business and regulatory point of view. The model that uses branches characterizes banks with a more centralized structure, where decisions are made by the parent company.
10 Aug 2018
25 Jun 2018
22 May 2018
The European Commission has initiated a review process of the three European Supervisory Authorities (the European Banking Authority, European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority), known as the ESAs. BBVA took part in a forum in Brussels that debated the present and future of these organizations, together with regulatory authorities and representatives of the financial industry.
20 Apr 2018
The Eurosystem is the monetary authority of the euro area. It comprises the European Central Bank (ECB) and the national central banks of the Member States whose currency is the euro. Its primary objective is the maintenance of price stability, and specifically, keeping inflation in the euro area (calculated based on internal stats of the ECB) “close to but under 2 per cent.”
15 Mar 2018
The history of the stock market dates back over 500 years since its journey began in 1460 in Antwerp. Logically, trading has greatly transformed since then, though the most significant changes have occurred in recent decades, especially since the boom of the new technologies that have allowed time and distance to cease being factors in the stock world.
02 Mar 2018
Fair-trade coffee, quality guarantee, ecological tomatoes… consumers read the labels on the things they eat. But is there any way of checking that what they say is correct? In order to do so, you would need a register of the processes to which the product has been submitted, something blockchain can do.
22 Feb 2018
The headlines about the U.S. dollar this year have underscored how complicated it is to predict the movement of any one currency in a global economy. They’ve gone from grim (“Dollar set for worst January in 30 years”) to triumphant (“Dollar claws back”) to deflated (“Dollar’s rebound fizzles”) in a matter of weeks.
21 Feb 2018
On January 31st, the European Banking Authority (EBA) announced the formal launch of this year’s EU-wide stress test exercise of the euro area. It also unveiled the macroeconomic scenarios under which the exercise will be carried out. The adverse scenario implies a deviation of EU GDP from its baseline level by 8.3% in 2020, resulting in the most severe scenario to date. The EBA expects to publish the results of the exercise by 2 November 2018
02 Feb 2018
25 Jan 2018
Economic activity in Latin America has been invigorated in recent months, in line with the recovery of confidence among families and businesses and a more favorable external context. In its Latin America Economic Outlook for first quarter 2018, BBVA Research forecasts that the region’s growth will increase from 1.1% in 2017 to 1.7% in 2018 and 2.5% in 2019.
04 Jan 2018
Ignacio Echevarría, BBVA’s Head of Wholesale Funding and Capital Management, explained in the El Catalejo (“The Spyglass”) the factors that, in his view, will determine the evolution of capital markets in 2018.
13 Dec 2017
Once again, the Argentine economy faces critical decisions to avoid a new downturn and take the path to more sustainable growth. Markets are keeping a close eye on the post-electoral roadmap outlined by the administration of President Mauricio Macri.
23 Nov 2017
The Financial Stability Board (FSB) has just published the list of Global Systemically Important Banks (G-SIBs) for 2017. The number of institutions remains the same, but with three significant changes. Systemic banks have a major impact on the economy, but what makes them different from the rest?
16 Nov 2017
Money 20/20 Las Vegas is without doubt one of the showcase events for technology and financial services in the world. Every years thousands of people involved in the industry, from big banks like BBVA to technology firms like Google and most importantly innovators and start-ups, gather to discuss the future of the industry.
The BBVA Group’s activity in the capital markets during 2017 has been nothing less than brilliant after having completed its latest issue of CoCo bonds in November. During 2018, BBVA hopes to refinance the maturities of issues that are not eligible under EU norms, with Senior Non-Preferred debt. You can find all the information in the latest fixed income presentation.
13 Nov 2017
Latin America will be one of the leaders of the global economy. The digital transformation has been one of the keys to this reduction in poverty and improvement in social indicators. But how has it helped? One example is digital financial inclusion.
The European Commission (EC) and the European Banking Authority (EBA) have published their work plans for 2018. The documents describe the specific activities and tasks the organizations plan to carry out next year. Both proposals place increasing importance on the fintech sector, since it could bring about a radical change the financial industry.
10 Nov 2017
The use of cash as method of payment has been declining in recent years, in favor of digital methods and credit cards. Last month we saw another example in the Hawkers sunglass brand, which will not be accepting cash payments in its new Madrid store.
08 Nov 2017
Remittances remain a major, if not the largest, source of foreign revenue for Mexico. In 2016, the dollar volume for remittances to Mexico jumped 8.8% over the prior year and reached an all-time high of nearly $27 billion — about 95% of those remittances came from the U.S. The U.S.-Mexico corridor is one of the largest remittance sectors in the world, and four key influences are helping to further fuel its significant growth.
07 Nov 2017
The finance industry will survive the disruption in the sector, but only a few banks will be able to offer the best customer experience, adapt to the new ecosystem and successfully achieve their digital transformation. “Competition with the fintech companies makes us better and stronger,” said José Manuel González-Páramo, BBVA’s Executive Member of the Board, Head of Global Economics, Regulation and Public Affairs, during the European Central Bank´s Forum on Banking Supervision.
According to BBVA Research’s latest Spain Outlook report, 2017 will cap off Spain’s three-year run of GDP growth at rates above three percent. Recovery will continue in 2018, but at a slower pace, in an environment marked by rising uncertainties. The report was presented today by Jorge Sicilia, Chief Economist of BBVA Group and Head of BBVA Research, Rafael Doménech, Head of Macroeconomic Analysis of BBVA Research and Miguel Cardoso, Chief Economist Spain and Portugal. Considering this scenario, BBVA Research has downgraded its GDP growth forecasts for 2017 and 2018 to 3.1 and 2.5%, from 3.3% and 2.8% in July.
30 Oct 2017
Market analysts have given positive reviews to BBVA’s third quarter 2017 results, which in many cases surpassed prior forecasts. In their reports, the analysts underscored the performance of expenditures and provisions below forecasts. BBVA´s businesses in Spain, Turkey and South America all surprised analysts with their good performance.
17 Oct 2017
The European Commission has published a legislative proposal to create a sort of European Securities and Exchange Commission – that is, a European agency that would centralize some of the stock exchange supervision competencies of the national authorities. Once it is approved, part of the activity that takes place on the European exchanges would come under control of the new European authority.
13 Oct 2017
The Financial Stability Board (FSB) is an international body that oversees the proper running of the financial system by promoting oversight and regulatory policies.
11 Oct 2017
Stock market indices can be described as baskets of shares. They are calculated based upon the average prices of a number of shares selected from a market or a particular sector. Their performance allows the investor to know the evolution and trends in the market. At the same time, indices serve as a reference for investors who specialize in funds or portfolios of shares. Following is a list of the principal stock indices on the world market.
10 Oct 2017
The country risk premium is the return that investors demand from a country to buy its sovereign bonds in comparison with that demanded from other countries. It is calculated as the difference between the interest rate of a country’s bonds compared to bonds issued by a benchmark country, considered “riskless.”
06 Oct 2017
27 Sep 2017
BBVA’s Board of Directors resolved today to approve the payment of an interim dividend for 2017, for a gross amount of €0.09 per share, to be paid on October 10.
The recent elections in Germany have ended this year’s electoral cycle in Europe. With euroscepticism weighing in at the ballot box, it’s now up to the European Union to bring its institutions closer to the continent’s citizens, according to José Manuel González-Paramo, Executive Director of BBVA, speaking at a conference on “The New Europe: Challenges and Opportunities” organized by ADEIT.
26 Sep 2017
Speaking this morning at the 22nd annual meeting organized by Bank of America Merrill Lynch in London, Chief Financial Officer Jaime Sáenz de Tejada explained some of the key aspects BBVA’s strategy to investors. “BBVA is well positioned for the new growth cycle”, thanks to a solid balance sheet and capital position, as a result of the company’s efforts in recent years, its geographic diversification and forward-looking transformation strategy.
25 Sep 2017
The European Banking Authority (EBA) is fully immersed in analyzing regulation of financial technology – better known as fintech. In the spring of 2017, the EBA began its first attempt to create a map of fintech and its regulation. The results were published in this document. The EBA found that there are more than 1,500 fintech companies in the European Union. They have detailed information about 282 of these, and 31% are not subject to any sort of regulation.
18 Sep 2017
The EBA recently completed its latest monitoring exercise to assess EU Banks’ capital, leverage, and liquidity ratios assuming full implementation of the CRD IV-CRR/Basel III framework. Overall, the results show that, between June and December of 2016, there was an improvement in both CET1 capital and liquidity ratios.
08 Sep 2017
For months, European authorities have been mulling over a crucial issue for the health of the financial sector: reducing the stock of non-performing assets that have been piling up in banks’ balance sheets during the years of financial crisis. The creation of a bad European bank is one of the alternatives that are being considered to solve the problem.
06 Sep 2017
One of the topics of debate in the European Union’s Payment Services Directive 2, better known as PSD2, is how to articulate the access to customer data by third parties. The European Banking Authority (EBA) has said it is in favor of access through Application Program Interfaces (APIs), which it regards as being more secure in protecting customer data. That position differs from the one taken to date by the European Commission.
01 Sep 2017
BBVA Group has published the June 2017 update of its presentation aimed mainly at analysts and fixed-income investors. The key new point is the incorporation of the 2017-2018 issuance plan for senior non-preferred debt. BBVA plans to issue up to €4.5 billion of this type of instrument this year and next.
29 Aug 2017
BBVA has participated in a public hearing in the European Parliament, organized by the Committee on Legal Affairs (JURI). The aim of the hearing was to allow stakeholders to share their insights into the directive’s insolvency proposal with the MEPs. BBVA was the only representative of the financial sector, a fact that attests to the bank’s relevance for EU institutions on these matters.
28 Aug 2017
Once more this year, the symposium of the most important central bankers in the world was held in Jackson Hole from August 24 to 26. Under scrutiny were Janet Yellen, the Chair of the U.S. Federal Reserve and Mario Draghi, President of the European Central Bank. Their words gave no indications of any changes with respect to the future of monetary policy.
24 Aug 2017
Jackson Hole is a town of only 9,000 inhabitants located in a valley in the middle of the Rocky Mountains in the US State of Wyoming. Apparently, there is nothing newsworthy about it, and, so, why have we been reading and hearing its name so often in the media lately?
28 Jul 2017
“Developing better solutions for customers through technology,” is one of the goals of BBVA. And the bank is managing to achieve it. CEO Carlos Torres Vila, along with CFO Jaime Sáenz de Tejada, used the occasion of the presentation of bank’s second quarter 2017 results to offer some interesting data on the bank´s digital transformation.
Market analysts have positively evaluated the half-year results BBVA presented yesterday. The general opinion is that BBVA Group reported solid results that confirm its ability to generate strong rates of growth throughout 2017. The results were better than expected in the principal income statement categories and business areas.
27 Jul 2017
BBVA presented today its financial statements for the April-June 2017 period. BBVA CEO Carlos Torres Vila said that “the second quarter results confirm the positive trends recorded earlier this year, both in terms of financial results and of transformation and value creation for shareholders.”
How did the bank do during these three months? And what about during the first half of the year? These are the keys to understanding the results: