How do you tackle weaknesses of Spanish/Southern European banks?
The Spanish banking sector has been profoundly transformed in recent years, through a process of merger and concentration in the number of banking entities. This process has been supervised and coordinated by the Bank of Spain together with the European banking supervisors. However, in our firm we believe that we must maximise risk prevention measures, so we recommend obtaining portfolio custody services only in banks with proven solvency and solidity. At the same time, the risk of the portfolios is mostly diversified through investment funds, which are off-balance sheet of custodian banks. Our direct exposure to bank risk is very restricted and selective.
Name: Yoel Rosenheck
Title: Partner and financial analyst
Company: Troy Asociados