(Finance) – BBVAa Spanish banking giant, has presented to the authority Spanish national team for markets and competition (CNMC) a series of “unprecedented” measures to ensure financial inclusion, SME lending and competitiveness, in particular in Catalonia and the Valencian Community, in order to facilitate a quick authorization for combination with Sabadell Bank.
Specific commitments presented include: BBVA it will not close offices where there are no other branches nearby and will maintain trading conditions for individuals and SMEs in those postcodes where there are fewer than four financial institutions. Furthermore, the bank undertakes to maintain, for 18 months, working capital lines for all SMEs andcurrent credit volume total for those who work exclusively with the two banks.
These commitments “largely mitigate the risks identified by the CNMC, which are mostly concentrated on certain territories”, we read in a note, where the bank states that it will continue to work closely with the authority to finalize the commitment agreement and theauthorization of the operation as soon as possible.
“The commitments presented exceed those agreed in previous operations in the Spanish financial sector, some even significantly – said the CEO of BBVA Onur Genc – It’s about unprecedented measures to increase lending to SMEs, a key segment in which we want to continue to grow, and ensure access to banking services in all territories.”
The CNMC, in its analysis of the operation of BBVA and Banco Sabadell, decided to move on to second phase of reviewconsulting with market participants to evaluate the effectiveness of the commitments presented to mitigate SME-related risks and to clarify BBVA’s commitments in the merchant acquiring market.
In line with previous transactions, BBVA proposed the assignment from the excess stakes in payment companies.