Bank of Spain inspectors warn: “Mergers may be creating banks that are almost impossible to rescue.”
The disturbing letter to Parliament from the association brings together the bulk of the Inspection. They warn that mistakes from the past are being repeated in the new wave of bank mergers and that the pandemic accentuates “the vulnerability” of the system
“Our country has already embarked on a relevant concentration process, so the implementation of new processes may imply the creation of entities that are impossible to rescue,” the board of directors of the Association of Inspectors of the State advises in a letter to the Congress of Deputies. Banco de Spain, which represents the bulk of this important body of the Administration.
The document, to which this newspaper has had access, was sent last month to the president of the parliament committee