The BBVA-Sabadell merger: General benefit or financial risk?

The recent acquisition proposal of Sabadell bank by BBVA has sparked intense debate in the economic and social spheres, questioning the potential benefits and consequences of this operation. According to Professor Jean Tirole, Nobel Prize in Economics, the economy should serve the common good, always seeking to generate a positive impact on society through policies that promote the general interest. However, in this purchase offer, it seems that only the benefit of BBVA shareholders is being prioritized, disregarding the potential negative effects on the population and businesses as a whole. From a broader perspective, the merger between BBVA and Sabadell would exacerbate the already high existing banking concentration, which has drastically decreased in recent years. The 2008 financial crisis left only 10 significant entities in the sector, resulting in job losses, branch closures, and reduced services for citizens. In this context, the proposed merger would lead to the elimination of another 4,000 jobs, as well as significant transformation costs that could amount to billions of euros, negatively impacting financial exclusion for consumers. Furthermore, this operation could have repercussions on the competitiveness of the banking market, translating into lower benefits for customers in terms of returns on their savings. The creation of increasingly larger entities, considered "too big to fail," raises serious questions about the stability of the financial system and the potential impact on the economy as a whole in case of difficulties. Is it advisable to continue promoting the consolidation of mega-banks in a country where small and medium-sized enterprises predominate? Professor Antoni Garrido warns about the risks of concentrating credit offerings on large clients, which could hinder financing for SMEs and contribute to the creation of a "financial monoculture." The lack of diversity in the banking sector increases the system's vulnerability to potential crises and systemic issues. In this sense, it is urgent to promote greater diversity and competition in the sector, instead of encouraging uniformity and concentration in a few entities. It is also relevant to question the role of regulatory authorities in this process, especially the National Commission on Markets and Competition (CNMC), whose responsibility is to ensure free competition in the market. In a context where combating monopolies has been a priority in other countries, it is necessary to critically evaluate the potential risks of loss of competition that this operation could entail, as well as consider the lessons learned from past experiences in regulating corporate mergers. In conclusion, the proposal for Sabadell's acquisition by BBVA raises important questions about the true impact of this operation on the common good and the economy as a whole. It is essential that society as a whole and the competent authorities carefully analyze the potential risks and benefits of this merger, with the aim of ensuring a solid, diverse financial system oriented towards benefiting society as a whole.