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BBVA around the world

BBVA around the world

Julian Romero is Head of the Sustainable Bond Group in BBVA’s lending department. As Head of this group of experts whose mission is to bring BBVA’s customers opportunities related to sustainable finance in the capital markets, he gives us an analysis of the potential of green bonds in Latin America.

It’s time for suitcases, airplanes, highways … and it’s the high season for tourism and travelling, an activity that has a huge economic impact around the world. In gross terms, this industry is most important to the United States, whereas in Spain it represents almost 15 percent of the GDP, with Catalonia and Spain’s islands being the preferred destinations.

Miembros del Dallas Creation Center inaugurado por BBVA Compass

The Boston Consulting Group (BCG) recently released research aimed at demonstrating the importance of digital transformation in corporate banking. In the research, BCG underscored the notion that for lasting and meaningful digital transformation, banks need to develop a clear vision for the future of banking, formulate a comprehensive strategy of how they will evolve alongside it, and plan their initiatives accordingly.

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.

2018 has been a year of consolidation for green, social, and sustainable bonds as sources of financing in capital markets, as their solid growth demonstrates. So far, the global market for these sustainable financial instruments has reached the equivalent of €71 million euros, according to Dealogic. In Spain alone, the volume of green bonds issued in 2018 has already exceeded the amount issued in 2017.

EBITDA, or Earnings Before Interests, Tax, Depreciation and Amortization, is an accounting measure that shows the gross income before financial expenses are deducted, and which allows financial analysts to assess the behavior and financial standing of companies.

There is no one-size-fits all when categorizing small businesses, according to BBVA Compass Business Banking Segment Executive Director Elizabeth Dobers. Some banks have a different outlook when making that determination – including consideration of annual sales, number of employees and annual receipts.

There has been a healthy amount of debate regarding a national fintech charter that was announced last week by the Office of the Comptroller. The U.S. Treasury has also been in the spotlight among columnists in the financial industry.

BBVA has requested arbitration procedures through the complementary mechanism of the ICSID – the International Center for Settlement of Investment Disputes – within the framework of the Reciprocal Investment Promotion and Protection Agreements between Spain and Bolivia with respect to the transfer of BBVA Previsión AFP (Pension Fund Administrator) to the Government of Bolivia.

Exchange Traded Products (ETPs) replicate the movement of a financial asset or basket of financial assets such as indexes, commodities or currencies. An ETP is an “investment vehicle” that combines the advantages of shares, in that they are traded in the continuous markets of exchanges with an investment in a group of financial assets. This characteristic has made ETPs a very popular alternative investment.

BBVA, a pioneer in the area of immediate private customer enrollment, has enhanced the sign-up process over its digital channels. Last year, the Bank announced the creation of Veridas, a technology company, specializing in the development of new identification and authentication systems. BBVA founded the new company with Das-Nano, a startup based in Spain’s northern Navarre region. The joint venture has borne fruit: now any person – whether a private individual or a self-employed worker – can sign up as a customer, from anywhere and at any time, by simply sending the bank a photograph and video.

Garanti award best retail bank -BBVA

World Finance Magazine and European CEO Magazine pay tribute to the BBVA unit’s achievements in customer experience and digital transformation. Garanti has been named as “the Best Retail Bank in Turkey” by World Finance Magazine and as “the Best Retail Bank in Europe” by European CEO Magazine in recognition of the quality of customer experience it delivers, the digital transformation of its branches and innovative projects and solutions such as its instant e-commerce loan.

International investment in infrastructure projects continues to be insufficient. This is the conclusion reached at the B20 summit where global companies provided guidance to the G20. According to the task force charged with studying growth and infrastructure financing, the infrastructure investment gap needs to be resolved to exploit the sector’s enormous potential and drive more inclusive development.

The European Union is already readying itself for the possible exit of the United Kingdom from the European club without an agreement between the two sides. Although no scenario has been ruled out, Miguel Jiménez, the chief economist for Europe at BBVA Research, argued in a recent article published in El País that “a no-deal exit in March, with no transitional period, is no longer inconceivable”. In his opinion, this would be the worst possible outcome of Brexit.

The European Central Bank in 2018 began the turnover process in a number of key posts on its Executive Board. The crux will be the end of Mario Draghi’s term in office in October 2019 amid doubts about whether his departure will coincide with a hike in interest rates expected between the summer and the fall of next year.

Spain has just become one of the few countries in the European Union with a concrete proposal for launching a regulatory sandbox. The goal? To create a space for experimentation, temporarily unencumbered by regulatory measures, to promote innovation in the financial sector. In doing so, Spain thus has stolen a march on other countries in this area, with a proposed law that appeals to both the traditional financial industry and new fintech startups. Álvaro Martín, Chief Economist for Digital Regulation and Trends at BBVA Research helps us understand how it will function and if it benefits the consumer.