BCP-Novobanco merger speculation

 In Banks, News

The question of a possible merger between BCP and Novobanco has again been circulating in banking circles in Portugal.

The Governor of the Bank of Portugal, Mário Centeno said in an interview that: “synergies of this pairing are valid for the two banks or any others” and added that: “against a backdrop of digitalisation and with more challenges to the traditional banking sector, a merger that emerges from the market is the most desirable” outcome.
Reported by the newspaper Negócios and on SIC TV news, Mário Centeno made the comments when asked if a merger between the two banks would bring stability to the sector.
“I think that synergies that might arise from such a partnership or of any other that would be sustainable in the Portuguese market would be beneficial for the banking system”.
Nevertheless he stressed that he was an “academic” question regarding the market and the way that it see the banking sector.
“All statements made in relation to such a deal could influence the market and the role of the central bank is “not to influence the market”.
In the interview, the Governor of the Bank of Portugal said that the banking sector was “more attractive for good reasons” namely its “resilience, results and levels of low risk”.
Mário Centeno also said he believed that a recession was “still avoidable”.