THE SPANISH ACQUISITION.ACROSS LATIN AMERICA Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , THE MAKINGS OF A major bank crisis blossomed this year-soaring interest rates, flagging economic growth and wobbling wobbling Vox populi Ataxia, see there exchange rates. When the Brazilian currency finally collapsed, all eyes turned to watch Banco Santander Santander, city (1990 pop. 194,221), capital of Cantabria prov., N Spain, in Cantabria, on the Bay of Biscay. It is a seaport, fishing center, and a popular resort. On the nearby peninsula of Magdalena is a former royal summer palace. Central Hispano (BSCH BSCh abbr. Bachelor of Science in Chemistry ) and Banco Bilbao Vizcaya (BBV BBV Banco Bilbao-Vizcaya BBV Black Box Voting (unsecure voting machines) BBV Blood-borne Virus BBV Blockbuster Video (store) BBV Beroepsorganisatie Banken Verzekeringen (Dutch) ), Spain's number-one and-two banks, take a major haircut Haircut 1. The difference between prices at which a market maker can buy and sell a security. 2. The percentage by which an asset's market value is reduced for the purpose of calculating capital requirement, margin, and collateral levels. Notes: 1. in the region. After all, Emilio Boton and Emilio Ybarra, chairmen of BSCH and BBV, respectively, have brashly brash 1 adj. brash·er, brash·est 1. a. Hasty and unthinking; impetuous. b. Rash. 2. Lacking in sensitivity or tact. 3. Presumptuously forward; impudent. led their banks on the largest Spanish Spanish, river, c.150 mi (240 km) long, issuing from Spanish Lake, S Ont., Canada, NW of Sudbury, and flowing generally S through Biskotasi and Agnew lakes to Lake Huron opposite Manitoulin island. There are several hydroelectric stations on the river. invasion of the New. World since the Conquest. In five short years, each bank has spent more than US$4 billion to acquire more than $40 billion in financial assets Financial assets Claims on real assets. . But if the conquistadores are in trouble, they are showing no signs of retreat. Just listen to Pedro L. Uriarte, vice chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Banco Bilbao Vizcaya: "We are not missionaries, we're bankers and we believe that if things are done right in the region, our investments will be profitable." So far, so good. In the first quarter of this year, when devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. pain should have started to show, both banks remained firmly in the black. Santander's Latin American operations posted almost $143 million in profit-more than a third of the group's total profits and well on its way toward its year-end goal of $500 million. Compared with the same quarter last year, Bilbao Vizcaya's regional profits fell 6% to $92 million, which still represents more than a third of the financial institution's total net income worldwide. Both institutions continue to make major acquisitions. As well as the added oomph from its merger with Central Hispano's operations in Latin America, Santander bought Banco O'Higgins to secure almost a third of the Chilean market-unless local authorities modify the deal. For its part, BBV spent another $250 million to buy Chilean pension fund group Provida, becoming the largest administrator of funds in the region. Nonetheless, as the following survey shows, the Spaniards' onslaught is far from over.
98 DEPOSIT
COUNTRY BANCO SANTANDER (STAKE) MKT. SHARE
ARGENTINA Banco Rio de la Plata (51%) 6.5
Banco de Galicia y Buenos Aires (10%) 8.6
Banco Tornquist (50%) [*] 0.8
BOLIVIA Banco Santa Cruz (90%) 22.0
BRAZIL Banco Santander Brasil (100%) 1.3
Banco Noroeste (76%) 1.1
COLOMBIA Banco Santander Colombia (60%) 5.4
CHILE Banco Santiago (22%) [*] 14.9
Banco Santander Chile (85%) 11.9
MEXICO Banco Santander de Mexico (71%) 6.4
Banco Bital (8%) 9.3
PANAMA Banco Santander Panama (100%) 1.1
PARAGUAY Banco Asuncion (39%) [*] 4.4
PERU Bancosur (45%) [*] 3.4
Banco Santander Peru (100%) 2.8
PUERTO RICO Banco Santander Puerto Rico (78%) 15.7
URUGUAY Banco Santander Uruguay (100%) 6.5
VENEZUELA Banco de Venezuela (98%) 9.8
98 DEPOSIT
COUNTRY BANCO BILBAO VIZCAYA (STAKE) MKT.SHARE
ARGENTINA BBV Banco Fances (59.7%) 6.8
Corp Banca (100%) 0.3
BOLIVIA
BRAZIL BBV Brasil (100%) 0.9
COLOMBIA BBV Banco Ganadero (56.2%) 10.0
CHILE Banco BHIF (44%) 4.2
MEXICO BBV Mexico (67.3%) 7.2
PANAMA BBV Panama (100%) 0.1
Banco Ganadero Panama (39.2%) 0.6
PARAGUAY
PERU Banco Continental (38.7%) 17.3
PUERTO RICO BBV Puerto Rico (100%) 13.9
URUGUAY
VENEZUELA BBV Banco Provincial (51.4%) 22.0
(*.)After the acquisition of OHCH in April 99. The stake is:
Tornquist (100%) Santiago (44%), Banco Asundon (78%) and Bancosur (90%).
SOURCES: Salomon Smith Barney, company reports, LATIN TRADE
|
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion