Summary:
Paulo Macedo defends CGD against accusations of censurable behavior in the banking cartel case.
The TCRS is reviewing allegations against 14 banks for sharing sensitive credit information.
The European Court of Justice may determine if these practices violate competition rules.
Macedo asserts that the housing credit market remains highly competitive.
Reflecting on the last decade, Macedo highlights improvements in banking supervision and governance.
Overview of the Cartel Allegations
The president of Caixa Geral de Depósitos (CGD), Paulo Macedo, has stated that "some technicians" do not prove any "censurable behavior" among the banks accused in the ongoing "banking cartel" case. This case involves 14 Portuguese banks, including Caixa, accused of restricting competition by sharing information regarding credit conditions over more than ten years.
The Legal Proceedings
The allegations are currently being adjudicated in the Competition, Regulation, and Supervision Court (TCRS). In 2022, it was established that there was an "informal coordination" among the banks, allowing them to reduce uncertainty in their operations. The judge has referred questions to the European Court of Justice (ECJ) regarding whether this information exchange constitutes a violation of competition rules. Recently, the ECJ acknowledged that these practices may represent a "restriction on competition", but the final ruling is still pending and is set for September.
Macedo's Assurance of a Competitive Market
Despite these allegations, Macedo insists that there is no more competitive market in banking than that of housing credit. He emphasized the intense competition present in this sector, stating, "If there is one thing I am sure of, it is that there has always been fierce competition in housing credit." He expressed the importance of determining whether the court views the information exchange as detrimental to competition.
Improvements in Supervision and Governance
During a press conference, Macedo reflected on the improvements in banking supervision and governance over the past decade, particularly since the resolution of Banco Espírito Santo (BES). He noted that there has been a more active and intrusive supervision and better criteria for appointing bank administrators. He also pointed out that banks are currently more solid due to regulatory changes and a decrease in household and corporate debt compared to ten years ago.
Macedo summarized the current situation: "For less credit, banks today have much more capital."
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