Álvaro Santos Pereira stated today his preference for a healthy and profitable banking sector to ensure the economy functions effectively. He also emphasized the importance of fostering banking consolidation at a European level.
During a hearing related to his appointment to the Banco de Portugal (BdP), Santos Pereira was questioned by the PCP about the high banking profits, asserting that bank profitability is essential for the sector’s stability.
“Do you prefer profitable banks or banks requesting taxpayers’ money?” he asked.
He warned that a very fragile banking sector can fall into the hands of foreign investments. When banks are in an absolute fragile state, securing capital to defend them becomes very challenging.
Santos Pereira also remarked that European banking consolidation is crucial, which would be beneficial for strengthening the banking and financial sectors.
“Promoting this consolidation is important,” he argued.
Regarding bank fees, Santos Pereira responded that the best way to reduce them is through competition, where ‘fintech’ companies can be of assistance.
He advocated that through competition, digital financial institutions, or ‘fintech,’ can contribute to lowering fees.
Concerning ‘fintech’ providing credit, he highlighted that these institutions play an important role in increasing competition, and traditional banks understand their agility in certain segments.
He noted that innovation lies with ‘fintech’ and expressed his desire for Portugal to be an “innovative country.”
