I have 2 Finance Cases. In the end of each case you have to answer several questions. Make sure that you explain fully each answer. No plagiarism.
BANCO SANTURCECompany backgroundBanco Santurce was founded in 1948 by Íñigo Azpiliciueta, one of the most important ship builders in Spain, in Santurce, a village located in the Spanish Basque Country.
By 1931, with the Spanish II Republic, Banco Santurce was among the 10 most important financial entities in Spain, still owned by the Azpilicueta family. This bank was the only Spanish financial company to have operations in other markets like UK, Portugal, France and Italy. Banco Santurce was key for the reconstruction of Spain after the civil war that took place from 1931 to 1936.
By 1987, there were 7 big banks in Spain, being Banco Santurce the 4
thone. The other three banks that were bigger than it were as well multionational companies. In 2010, these 7 big banks were reduced to 4. Banco Santurce was the 2
ndbiggest bank in Spain by that time and was among the 20 biggest banks worldwide with affiliates in Latam, USA and European Countries such as Italy, UK and Austria.
The competitorThe Spanish financial sector was made of 54 financial institutions counting Banks and Savings Banks. The biggest bank in Spain by 2010 was Banco Gijón, located as well in the North of Spain. Both companies, Banco Santurce and Banco Gijón had their headquarters in Madrid.
In terms of Assets, Banco Santurce had 535,065 million euros and Banco Gijón 1,110,529, so Banco Santurce was more or less half the size of its main competitor in Spain. There was still a very long way to go to be #1, but Banco Santurce was committed to it. It’s President, Francisco Alcázar wanted Banco Santurce to be #1 bank in Spain in 10 years.
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Finance Professor: Juan Aitor Lago Moneo Business Case BANCO SANTURCE Company background Banco Santurce was founded in 1948 by Íñigo Azpiliciueta, one of the most important ship builders in Spain, in Santurce, a village located in the Spanish Basque Country. By 1931, with the Spanish II Republic, Banco Santurce was among the 10 most important financial entities in Spain, still owned by the Azpilicueta family. This bank was the only Spanish financial company to have operations in other markets like UK, Portugal, France and Italy. Banco Santurce was key for the reconstruction of Spain after the civil war that took place from 1931 to 1936. By 1987, there were 7 big banks in Spain, being Banco Santurce the 4th one. The other three banks that were bigger than it were as well multionational companies. In 2010, these 7 big banks were reduced to 4. Banco Santurce was the 2nd biggest bank in Spain by that time and was among the 20 biggest banks worldwide with affiliates in Latam, USA and European Countries such as Italy, UK and Austria. The competitor The Spanish financial sector was made of 54 financial institutions counting Banks and Savings Banks. The biggest bank in Spain by 2010 was Banco Gijón, located as well in the North of Spain. Both companies, Banco Santurce and Banco Gijón had their headquarters in Madrid. In terms of Assets, Banco Santurce had 535,065 million euros and Banco Gijón 1,110,529, so Banco Santurce was more or less half the size of its main competitor in Spain. There was still a very long way to go to be #1, but Banco Santurce was committed to it. It’s President, Francisco Alcázar wanted Banco Santurce to be #1 bank in Spain in 10 years. 2010 and lack of liquidity By 2010, banks and above all savings banks were suffering from lack of liquidity to pay their loans to foreign investors, mainly other banks from Northern European countries. They were all longing for deposits since international investors were now worried about the...