For more than a decade the banking is immersed in a process of concentration and restructuring to become increasingly efficient within its sector, and the 3 crisis that we have and are living have not helped him much.
In this Restructuring process many of the Offices that existed at street level and, therefore, the employees who attended them when they disappeared they weren’t necessary.
The crises have greatly affected the banking sector
The two crises that we have experienced since 2008 and the last one that we are currently experiencing has caused the reduction of much of the bank offices and the reduction of a large number of employees.
During 2008 there were more than 270 thousand employees in the Spanish banking sector, according to data from Bank in Spain, at the beginning of last year the number of employees in the banking sector in Spain had been reduced by more than 95 thousand employees.
But during 2020 things have not improved much, since they have continued to decline due to the entry into play of the negative economic effects of the pandemic of the coronavirus.
The restructuring of the banking system has been to reduce costs and due to the concentration of entities
The restructuring and concentration process continues, as the banking system in Spain has already announced a new process to cut its employees. The Santander Bank has already started the elimination of around a thousand branches and reduction of its workforce by almost 3,600 employees.
For its part, the announced merger of Unicaja and Liberbank has also led to the reduction of the person of the two entities, which, not having any official data for the entities, is estimated to be around the 2 thousand employees.
The merger of Bankia and CaixaBank For it will be three quarters of the same, when reducing their employees, since they surely want to avoid the duplication of many functions. The forecast of the reduction of the workforce of the two entities is about 8 thousand employees.
The bank is in a moment of offensive mergers
Already a few decades ago, we could find a bank office in every corner of our cities or towns. Spain has always been european leader in the number of bank branches.
To the number of offices it could be added that we had a large number of Bank entities, between banks and savings banks, which made the number of employees also important.
From the crisis of 2008, there was a concentration of the sector, and this began from the bankruptcy of most of the savings banks and, therefore, the great decrease of employees within the banking sector.
Most of the savings banks were absorbed by banks that considerably decreased the services they provided and the branches. After this first phase of mergers, came the second round of mergers between the banks.
Banks were looking to be more effective and fight against the negative rates that had settled in the economy in Europe, and the quickest solution to be more effective and efficient is merge with another bank. With these mergers, new synergies are generated and costs are saved, which again involves reducing employees.
Currently, the mergers between the different banks they have become defensive, that is, mergers are made to reduce costs and not to grow or expand the market, such as an offensive merger.
This situation will last for a long time, since there is no recovery in the business sector and an interest rate hike in the banking sector will continue to need to restructure.
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