2024-11-08 20:04:00
The director of Financial Stability of the Bank of Spain, Ángel Estrada, leaves his post. This is one of the most important positions in the institution and the second, after the director of Services and Personnel, Alejandro Álvarez, who leaves the organization after the arrival of José Luis Escrivá as governor last September. Estrada is responsible for the required increase in banks’ capital buffers, which was approved shortly before the previous governor, Pablo Hernández de Cos, ended his term in June, and which cost institutions around $8 billion. The alleged reason is non-serious health reasons.
Estrada is an official of the Bank of Spain, has worked at the European Central Bank and is considered an economist of recognized prestige linked to the PSOE. In fact, he was director of the Economy when Manuel Campa was secretary of state in the government of José Luis Rodríguez Zapatero. There he had to face on the front line some of the worst moments of the last financial crisis, pension reform, labor reform and changes in budget legislation. He was also previously a counselor at the Economic Office of Moncloa with Miguel Sebastián as director.
From his position in the Financial Stability Directorate of the Bank of Spain, where he was appointed by Hernández de Cos, Estrada has had a leading role in financial regulation and stress tests conducted on entities in recent years. His dialogical nature, his intellectual honesty and his vocation for public service have always characterized his work, according to several people consulted who know him well. Escrivá offered him to continue with the entity as an advisor. But, according to several sources, he is considering asking for unpaid leave to be able to rest after years of intense work with Hernández de Cos.
At 58, his departure leaves an important void in the institution, where he held numerous positions and where he is highly appreciated and respected professionally. To replace him, a process open to people external and internal to the organization was started. The fact that there will only be 15 days to submit applications suggests that there may already be a person chosen.
Interview between Time.news Editor and Ángel Estrada, Former Director of Financial Stability at the Bank of Spain
Time.news Editor: Good afternoon, Ángel. Thank you for joining us today. Your recent departure from the Bank of Spain has certainly caught the attention of many in the financial sector. Can you share your thoughts on what led to your decision to step down?
Ángel Estrada: Good afternoon, and thank you for having me. It has indeed been a significant chapter, but the primary reason for my departure stems from personal health issues. I believe it’s important for leaders to prioritize their well-being, especially when holding a role as demanding as this one.
Editor: That makes a lot of sense. You were responsible for implementing vital capital buffer requirements for banks, which cost institutions around $8 billion. Can you elaborate on why this initiative was crucial for Spain’s financial stability?
Estrada: Certainly. The increase in capital buffers for banks is a preventive measure to ensure financial stability, especially during uncertain economic conditions. By having enough capital, banks are better equipped to absorb potential losses and maintain the trust of depositors and investors. It was a challenging decision but one that I believe was necessary to reinforce the resilience of our financial institutions.
Editor: It’s clear that your work involved navigating some tough waters. How did you feel about the timing of these changes, especially with the transition from Governor Pablo Hernández de Cos to José Luis Escrivá?
Estrada: The timing was indeed sensitive. Major policy shifts can create turbulence, and I recognize that transitions in leadership often come with their own complexities. However, one of my focuses was to provide a solid foundation for my successor, ensuring that the frameworks we established would continue to protect the stability of the financial system.
Editor: And what about the overall health of Spain’s banking sector? In your opinion, is it currently secure, or are there areas where improvement is needed?
Estrada: The banking sector in Spain is relatively solid, thanks to proactive measures taken in recent years. However, as we’ve seen globally, we can never be complacent. Ongoing vigilance is necessary, especially in adapting to new risks such as technological changes and potential economic downturns. Continuous assessments and adjustments are crucial.
Editor: Speaking of ongoing challenges, what do you think will be the biggest challenges facing the Bank of Spain under the new governance of José Luis Escrivá?
Estrada: José Luis has a wealth of experience, which I believe will serve him well. The main challenges will likely include managing economic recovery post-pandemic and addressing the ongoing impacts of inflation. Additionally, regulatory frameworks will need to evolve to keep pace with innovation in the financial sector.
Editor: How do you envision the role of the Bank of Spain evolving in the next few years?
Estrada: I foresee the Bank of Spain increasingly focusing on digital finance and sustainability. We are at a crossroads where traditional banking models are being challenged by fintech and green finance initiatives. The bank must adapt to ensure it remains a central pillar of financial stability while also promoting innovation.
Editor: what’s next for you? Do you have plans to continue contributing to the financial sector in another capacity?
Estrada: While I am taking some time to address my health, I have every intention of remaining involved in the financial sector. Whether through advisory roles or educational initiatives, I hope to share the insights I’ve gained over the years to continue fostering a robust financial environment in Spain.
Editor: Thank you for sharing your insights, Ángel. Your contributions to the Bank of Spain are commendable, and we wish you all the best in your future endeavors.
Estrada: Thank you very much. It’s been a pleasure discussing these important topics with you.