The president of the Portuguese Banks Association (APB) criticized excessive regulation on the bank, while the deputy governor of Banco de Portugal considered that regulation strengthened banks and does not prevent profits.
In interventions at Money Conference, this Monday in Lisbon, the regulation about the banking sector was one of the topics addressed in his speeches by APB President Vítor Bento and Banco de Portugal deputy governor Clara Raposo.
For Vítor Bento, there are excessive requirements, both European and Portuguese, about Portuguese banks, damaging their competitiveness with their peers and other financial sector operators.
For the president of the association that represents the main banks, excessive regulation and bureaucracy impair “competitiveness and social welfare” and promote a “culture of excessive risk aversion”.
Vitor Bento criticized the application of “penalizers demands” such as contributions to the resolution fund, which join the European Resolution Fund, or taxes on the sector.
The president of APB also stated that the weighting of the risk to the assets of Portuguese banks obliges the most reserved capital, considering that this indicates that “the capital of Portuguese banks is worth less for European regulators than other banks in other countries”.
In this sense, the president of the Banks Association insisted that this capital “to attract investors, must be properly governed, with profits.”
For Banco de Portugal, regulation and supervision “have allowed banks to be more resilient” and are now better prepared for any crises.
The deputy governor of the BDP, Clara Raposo, considered that the current results of the banks show that they have been able to manage the requirements and generate profits.
Still on the current moment and the bank’s profits, Clara Raposo said that, at the time of current uncertainty, it is even more important for banks to “know how to invest the accumulated results in recent years.”
It also recommended that entities “maintain prudence in the constitution of imparities and capital preservation”, even as a year of reducing profits due to the continuation of gradual decline in interest rates.
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