Banco Santander. A Major Spanish Success

Banco de Santander has developed from a small regional bank to become one of the major players in European banking and the biggest bank in Spain over the last few years. It has now decided that it wants to dominate the European scene, starting with the UK, as it does the Spanish banking scene. In Spain where Santander goes the other banks soon follow and it seems that they have started to open the tap to new mortgages, a tap that has been closed now for almost a year. Expect other Spanish banks to follow.


Banco De Santander HQ in Sao Paulo

So what made the Santander strong in the current market? Spanish banks never bought into toxic debt to the same extent as other European banks as they were too busy being parochial in Spain by funding developers here, hence the huge construction boom of recent times, and also they looked to Argentina and other Spanish speaking South American countries as well as Portuguese speaking Brazil to develop their brands in new markets. So busy were they that when all of the newly repackaged toxic debt from the States was offered they didn't even bother looking at it. So now they are cash rich and picking up good deals like Abbey, Alliance and Leicester and Bradford and Bingley in a sort of Buffett way, buying in at the best time.

So why is the Spanish housing market dropping so much, just like the UK market? The major reason that transactions in Spain are down 26% this year is the lack of availability of credit. The 33% drop in mortgages given out is one of the proofs of that. People still want to buy but cannot because of the restrictions on lending and therefore the market in dropping in price bringing in even more people who want to buy. Obviously there is an oversupply of two bed two bathroom flats in coastal areas but the latent demand for the larger conurbations (Madrid, Barcelona, Valencia, Seville, Bilbao) is still there as the population grows year on year and rural depopulation increases as people look for opportunities in the cities. If the Santander open the taps again expect the Spanish market in the major towns and cities to perk up, especially if, and that is a big if currently, it coincides with a drop in interest rates from the European Central Bank.

So what will be the next target for Santander in the UK and when will the Competition Commission start looking into their adquisitions?

Still Positive?

I have read so many negative blogs about the situation in the UK today due to banking failures in the States and the stock market plummeting that it surprises me that there is anyone left in the country. Why don't you just leave and join the exodus? So anyway, if anyone wants to come and join us here in Valencia please make sure to bring a few things.

1) The intention to learn the language
2) A positive can do attitude
3) Respect for the culture of the country even if that means putting up with goats been thrown from towers etc...
4) Money. Two years of it minimum so that you have time to learn the language and set up a business you can be proud of.
5) An intention to add something to where you are. Remember givers gain.

We will be delighted to help you.

Referring back to my blog last week on Ecademy and to my podcast from the weekend which you can listen to here have a look at the positivity pouring out of the first and the news from Valencia and Spain too. It is not all doom and gloom. If you still decide you want to go then get in touch, ask me about anything regarding living in Spain or particularly Valencia and start planning your future. Remember you do have a choice. Sit back and let the media batter you into following the crowd into a recession or get off your touche and do something to make your life better.

(The photo refers to a house newly reduced to 345000 Euros to live the good life in Turis. Stunning place reeduced because the owners have moved back to Buenos Aires and need some cash. See it here)

Is Spain encouraging entrepreneurs at last?

The mayoress put in a by law that it was illegal to rent out balconies overlooking the pit lane for the recent European Grand Prix in Valencia. Therefore straw hats and pens became must have ultra expensive items for those petrolheads wanting to see a car stop, get filled with petrol for eight seconds and get out quickly.

How? Well as the law was in place eBay and others suddenly became totally inundated with Straw Hats and Pens for 1000 Euros with a free invite over to the owner's house to watch the Grand Prix. Entrepreneurship comes to Spain, finally and just in time to head off the biggest crisis and crash in history, it must be, it says so in the papers!!!