Banco Central Hispano

Banco Central Hispano
FormerlyBanco Central Hispanoamericano
Company typeS. A.
IndustryFinance and insurance
PredecessorBanco Central and Banco Hispano Americano
FoundedDecember 27, 1991 (1991-12-27)
DefunctJanuary 15, 1999; 25 years ago (1999-01-15)
SuccessorBanco Santander Central Hispano
Headquarters
Madrid
ServicesFinancing

Banco Central Hispano was a Spanish bank. In 1999 it was merged with Banco Santander to form Banco Santander Central Hispano.[1] However the bank group was reverted to refer as Santander Group or Banco Santander in 2007.

History

Both the Central Bank and the Banco Hispano Americano were closely linked to the struggling industrial sector following the first oil crisis.[2] The Central Bank was founded in 1919, growing alongside the Spanish industry, but faced challenges in the 1970s. The Hispano Americano Bank, established in 1900, inherited a portfolio from Banco Urquijo that heavily exposed it to the industrial sector. In 1985, banker Claudio Boada restructured it,[3] shifting its focus to loans and deposits. In 1991, Alfonso Escámez led the Central Bank, while José María Amusátegui was president of the Hispano Americano.

Attempts to merge the two banks began in the 1960s, led by Ignacio Villalonga and Antonio Basagoiti. However, the deal fell through due to concerns from Finance Minister Juan José Espinosa over the resulting bank's power. Another attempt under Luis de Usera and Escámez also failed, as Usera was not convinced by the proposed share exchange after reviewing the financials.[4]

Discussions between the Central Bank (BC) and Hispano Americano Bank (BHA) resumed in 1989 after a failed merger with Banesto.[4] On May 14, 1991, a letter of intent was drafted, outlining the absorption of BHA by BC.[5] Escámez was the first president until September 1992, when Amusátegui took over.[6]

The merger meetings occurred on October 30, 1991, with the official registration of BC’s capital increase for the absorption on January 2, 1992.[7] The new "Banco Central Hispano" became Spain's largest private bank, surpassing Bilbao Vizcaya (BBV).[8]

To stabilize during a banking crisis, the new entity sold several inherited banks and appointed Ángel Corcóstegui as CEO in 1994 for restructuring.[9] Central Hispano operated until its merger with Banco Santander was announced on January 15, 1999, forming "Banco Santander Central Hispano." Following this, BCH lost influence; Amusátegui and Corcóstegui both stepped down with substantial severance packages.[2][10]

See also

References

  1. ^ "Euro bank mega merger". BBC. 15 January 1999. Retrieved 15 April 2016.
  2. ^ a b "319 años de historia acumulados". El País (in Spanish). 1999-01-16. ISSN 1134-6582. Retrieved 2024-08-29.
  3. ^ Vidal-Folch, Xavier (1983-01-16). "Yo, Claudio". El País (in Spanish). ISSN 1134-6582. Retrieved 2024-08-29.
  4. ^ a b "Veinticinco años después". El País (in Spanish). 1991-05-15. ISSN 1134-6582. Retrieved 2024-08-29.
  5. ^ "El Banco Central absorberá al Hispano Americano y se convertirá en el mayor banco privado del país". El País (in Spanish). 1991-05-15. ISSN 1134-6582. Retrieved 2024-08-29.
  6. ^ EFE (2010-05-17). "Fallece Alfonso Escámez a los 94 años". La Verdad (in Spanish). Retrieved 2024-08-29.
  7. ^ "Central Hispanoamericano". El País (in Spanish). 1992-01-03. ISSN 1134-6582. Retrieved 2024-08-29.
  8. ^ "Los pasos de Santander hasta la cima de la banca". www.expansion.com. Retrieved 2024-08-29.
  9. ^ "Diario digital de actualidad económica y financiera". banca15.com. Archived from the original on 2015-04-15. Retrieved 2024-08-29.
  10. ^ Noceda, Miguel Ángel (2012-02-05). "Diez años de Corcóstegui y otros casos". El País (in Spanish). ISSN 1134-6582. Retrieved 2024-08-29.