Elisa Ferreira: Montepio still needs to be “stabilized”

  • ECO News
  • 27 June 2017

The administrator of the Bank of Portugal, nominated for vice-governor, states the banking sector is recovering. Yet, Montepio needs to be "stabilized" and "Novo Banco needs to be sold".

“Montepio still needs to be stabilized” was Elisa Ferreira’s statement, the nominee vice-governor of the the Bank of Portugal (BdP) on the Budgetary and Finance Commission on her nomination. Although she recognizes progress has been made in the banking sector, the administrator believes that aside from Montepio, Novo Banco still needs to be sold in order for the financial sector to be stabilized.

“We need to stabilize a bank which is not systemic, but which is a priority: Caixa Económica Montepio Geral”, stated Elisa Ferreira, highlighting the banking sector’s stabilization is being reached by solving the issues with CGD, BCP and BPI. The BdP administrator has stated that Montepio’s case is “a normal and gradual process”.

But aside from the bank headed by Félix Morgado, “Novo Banco still needs to be sold”. On the issue, Elisa Ferreira had stated everything will go “very well; a setback back may happen, but we do not foresee it”. The vice-governor also stated the deadlines for the process are being met: “I fully believe the signing will happen”.

All of this is included in a scenario where the banking sector is making progress. “Looking at the Portuguese banking now and putting things in perspective, in terms of assets, there is a deleverage in comparison to 2010”, she highlights. “Solvency levels increased” and capital ratios have improved. There is a “strengthening of capital”, Elisa Ferreira states, recalling there is also a “larger efficiency” in banking because of the decrease in loans-to-deposits ratio from 150% to 96% in seven years.