Spanish banks extend their rises on the stock market while awaiting the ECB’s verdict on the tax | markets

The wind is blowing in favor of the listings of Spanish banks on the Stock Exchange after the ECB announced the largest interest rate hike in its history, of 75 basis points, and new increases in the coming months. And today it extends the promotions in the face of the possibility that the tax on the sector announced by the Government in July may be softened in order not to encounter the opposition of the ECB, according to Vozpopuli.

Banks lead the rise of the Ibex today again, with a rise of more than 4% for Sabadell and more than 3% for CaixaBank, Bankinter and Santander. The sector extends the gains it has accumulated since last Thursday, the day the ECB announced the rate hike. The Government’s announcement of a 4.8% tax on banks on commissions and interest margin in 2023 and 2024 had an impact on prices when it was announced last July, but its impact would have already been reflected in prices, according to experts point out.

However, the possibility that it could be softened in some way is driving the entities on the Stock Exchange today. Not in vain, with the acceleration in interest rate hikes pointed out by the ECB, the collection forecast by the Government, of 1,500 million euros in two years, could be even higher since the rise in the price of money is going to be greater than expected. expected and will leave greater business margin for entities.

The tax on banks, together with that on energy companies, passed its first parliamentary filter this Tuesday as a law proposal and the PSOE opened itself to changes in the legal text “if there is an invasion of powers”, according to its spokesman in Congress, Patrick Lopez.

For the moment, the ECB is still waiting to be consulted on the tax and to have all the details of its design, according to sources from the institution. The vice president of the central bank, Luis de Guindos, recalled on Monday that the opinion that the ECB may issue “is not binding”, although he recalled the position of the institution before previous levies on European banks. He insisted that it should not affect the financing costs of companies and SMEs, or the granting of credit or the solvency of entities. The ECB already ruled against a Lithuanian government tax on banking in 2019, alleging the “negative impact” on the country’s financial system.

The effect of the tax on credit is one of the most sensitive issues, since the euro zone may be headed for an economic recession caused by interest rate hikes. “The ECB does not see it with good eyes since it needs banks to continue to be the transmission chain of its monetary policies, especially at a time when credit is going to be needed,” says Juan Fernández-Figares, director of analysis at Link Securities. The experts do highlight in any case the good solvency position of the sector, compared to the greater weakness with which it faced past crises, and the abundance of liquidity that they enjoy.


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