BBVA Proposes Comprehensive Measures to Ensure Financial Inclusion and SME Support Amid Banco Sabadell Merger

BBVA Proposes Comprehensive Measures to Ensure Financial Inclusion and SME Support Amid Banco Sabadell Merger

(IN BRIEF) BBVA has proposed comprehensive measures to the Spanish competition authority (CNMC) to secure approval for its merger with Banco Sabadell. These commitments include maintaining branch access in underserved areas, ensuring continued SME lending and credit lines for 18 months, and offering affordable banking for vulnerable customers. BBVA also pledged to maintain ATM access for Banco Sabadell customers and divest excess stakes in payment companies. The CNMC is in the second phase of its review, and BBVA aims to address competition concerns while ensuring financial inclusion and SME support across Spain.

(PRESS RELEASE) BILBAO, 21-Nov-2024 — /EuropaWire/ — BBVA has submitted a series of groundbreaking commitments to the Spanish National Markets and Competition Authority (CNMC) to address competition concerns and ensure financial inclusion, particularly in Catalonia and the Valencian Community. These measures are intended to facilitate the swift approval of its proposed merger with Banco Sabadell.

The commitments focus on guaranteeing access to banking services, supporting SMEs, and maintaining competitiveness.

Key measures include:

• Branch Accessibility: BBVA will not close branches where there are no nearby alternatives (within a 300-meter radius) or in postal codes with fewer than four financial institutions.
• Support for Low-Income Areas: Offices in postal codes with a per capita income below €10,000 will remain open, and municipalities with fewer than three competitors will receive twice-monthly Correos Cash services at no cost.
• SME Lending Continuity: BBVA will maintain all Banco Sabadell working capital lines and credit volumes for SMEs that exclusively bank with the two entities for 18 months, barring financial deterioration.
• Affordable Banking for Vulnerable Customers: A dedicated account will offer free debit cards, no maintenance fees, and unlimited domestic transfers through digital channels.

“These commitments exceed the standards of previous transactions in the Spanish financial sector. They reflect our dedication to boosting SME lending and ensuring access to banking services across all regions,” said BBVA CEO Onur Genç.

Second-Phase Review Underway

The CNMC has entered the second phase of its merger review, consulting market participants and further evaluating BBVA’s commitments. This phase aims to scrutinize risks related to SME lending and merchant acquiring while ensuring competition remains robust.

To enhance ATM access, BBVA has pledged to maintain Banco Sabadell’s ATM network for customers in the Euro 6000 network for 18 months or until the merger is finalized. Additionally, BBVA has proposed divesting excess stakes in payment companies to address regulatory concerns.

BBVA’s commitments, many lasting three years, are designed to address identified risks and ensure the merger benefits customers, SMEs, and local communities while safeguarding competition. The bank remains actively engaged with the CNMC to finalize the agreement and expedite the merger’s approval.

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SOURCE: BBVA