Spanish Banking Association’s CEO says Credit Suisse crisis and Silicon Valley Bank’s collapse will not impact Spanish banking system

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17th March 2023 – (Madrid) The Spanish Banking Association’s Chair and Chief Executive Officer, Alejandra Kindelan, has vehemently dismissed the notion that the Credit Suisse crisis and the Silicon Valley Bank’s collapse could infect the Spanish banking system. Speaking at the New Economy Forum, Kindelan made it crystal clear that the two banks’ misfortunes were not in any way linked to Spain’s banking industry, which was fortified following the 2008 financial crash.

Kindelan further expressed her unshakeable confidence in the country’s banking system, claiming that Spain has the best banks in Europe, and arguably, the world. Despite acknowledging the current climate’s volatility and uncertainty, she reassured the public that Spain’s banking system is more resilient and subject to much stricter control than before.

The Spanish Banking Association had been aware of potential problems with Credit Suisse, according to Kindelan. “It is a bank that had its difficulties,” she stated. However, she maintained that Spain’s banking entities are of a different type, and any comparisons between them are unjustifiable.

The collapse of Silicon Valley Bank, which dealt with a series of companies with the same business model, had no connection with Spain, as its deposits were poorly diversified, Kindelan explained. She emphasised that the liability and asset side of Spain’s banks were fundamentally distinct.

In a bid to pacify the markets, Spain’s Treasury Minister, Maria Jesus Montero, seconded Kindelan’s statements, alluding to the country’s more robust financial system that has since undergone stringent regulations. While the government remains composed, it closely monitors international developments.