|Traded as||BMAD: BTO|
|Fate||Rescued by Spanish government due to Banesto Scandal (1993) Absorbed into Santander Bank (2012)|
|Mario Conde (Former chief), Antonio Basagoiti (Chairman), José García Cantera (CEO)|
|Products||Retail, business and wholesale banking|
|€891.6 million (2009)|
|€559.8 million (2009)|
|Total assets||€126.2 billion (2009)|
|Total equity||€5.473 billion (2009)|
Number of employees
Banesto (officially Banco Español de Crédito, S.A., "Spanish credit bank",) was a Spanish bank, 88.4% owned by the Santander Group. Banesto was the fifth-largest banking group in Spain, operating around 1,770 branches. Outside of Spain, it is known as the sponsor of a cycling team that featured Miguel Indurain, the first rider to win five consecutive Tours de France. Today's Movistar Team is the direct descendant of this team.
Banesto acquired Banco del Pacifico in 1991 and renamed it. In 1993 it bought Banco de Concepcion, but the merger was suspended when Banco de España suspended Banesto. When Banco Santander acquired Banesto, Santander sold Banesto Uruguay, Chile, and Banco Shaw in Argentina. In 1994, Banco Santander sold Banesto Chile to Banco Hipotecario de Fomento de Chile (BHIF). In 1998 BBVA bought BHIF.
The Santander Group announced in December 2012 that it would purchase the remaining 10% of Banesto that it does not currently own, and will merge the business with the existing Banco Santander business in Spain.
1993 crisis and Bank of Spain intervention
This section needs expansion. You can help by adding to it. (February 2019)
In December 1993, the Spanish National Stock Exchange Commission (Comisión Nacional del Mercado de Valores) suspended trading shares in Banesto following a fall in value estimated between 6.56% and 6.8% from 2,135 to 1,995 spanish pesetas and sharp increases in loan delinquencies observed by the Spanish government in the previous quarter, Quarter 3 1993.
Alfredo Pastor, then-Secretary of The State for the Economy stated that inspectors from the Bank of Spain had concluded that Banesto lacked resources to cover liabilities and that the management of the bank was not able to secure the necessary financing to remedy the situation. In addition to its suspension, the Spanish government removed its chairman Mario Conde, replacing him with a board containing representatives of five other private banks: BBV, (now BBVA) , BCH (now Santander), Argentaria (now a part of BBVA), Santander and Popular (now Santander)
According to the New York Times, the bank was also forced to admit it was directing profits and revenue from some sales of assets into reserves for losses from loans. The Spanish newspaper El Pais dubbed the shortfall in financial resources a "hole", which has had varying estimates. The British newspaper The Independent cited the shortfall as 605 Billion Pesetas equating to $7.1bn as of January 2019 (£5.6bn).
Banesto Golf Tour
- "Annual Report 2009" (PDF) (in Spanish). Banesto. Archived from the original (PDF) on 2012-12-24. Retrieved 2010-04-11.
- "Banesto ratings affirmed with stable outlook, says Fitch". AFX News. Forbes. 23 April 2007. Retrieved 2008-12-30.
- "Santander absorbs Banesto and Banif and shuts branches". BBC News. 17 December 2012. Retrieved 29 September 2014.
- "Santander absorbs Banesto and Banif and shuts branches". BBC News Online. 17 December 2012. Retrieved 17 December 2012.
- Riding, Alan (1993-12-29). "Ambitious Bank in Spain Stumbles and Is Taken Over". The New York Times. ISSN 0362-4331. Retrieved 2019-01-05.
- País, Ediciones El (1993-12-29). "Reportaje | El 'agujero' de Banesto supera los 370.000 millones". El País (in Spanish). ISSN 1134-6582. Retrieved 2019-01-05.
- "'Black sheep' banker charged with Banesto fraud". The Independent. 1996-05-29. Retrieved 2019-01-05.
- According to Bank of England Data for 31 December 1991 (closest value to date provided). 1) 605000000000pst / 209.234 gbp 2) Roughly £2,891,499,469.49 according to the December 31 exchange rate between Pesetas and Pounds, 3) Applying interest per the Bank of England data (£1 in 1993 is £1.94 in 2019) = £2,891,499,469.49 * £1.94 = £5,609,508,970.8106 4) With £1 at $1.27 exchange rate this is £5,609,508,970.8106 * $ 1.27 = $7,140,916,138.86 Roughly £5.6 billion and $7.1 billion.
- "Clasificación General Circuito 2009". tour2009.banestogolftour.com. 2009. Archived from the original on 7 July 2011. Retrieved 12 October 2010.
- "Calendario Circuito 2010". banestogolftour.com. 2010. Archived from the original on 3 May 2010. Retrieved 12 October 2010.
- Official website
- Documents and clippings about Banesto in the 20th Century Press Archives of the German National Library of Economics (ZBW)
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