Banco Central Hispano was a Spanish bank. In 1999 it was merged with
Banco Santander
Banco Santander S.A. trading as Santander Group ( , , ), is a Spanish multinational financial services company based in Santander, with operative offices in Madrid. Additionally, Santander maintains a presence in most global financial centres ...
to form Banco Santander Central Hispano. However the bank group was reverted to refer as Santander Group or Banco Santander in 2007.
History
Both the Central Bank and the
Banco Hispano Americano were closely linked to the struggling industrial sector following the
first oil crisis.
The Central Bank was founded in 1919, growing alongside the Spanish industry, but faced challenges in the 1970s. The Hispano Americano Bank, established in 1900, inherited a portfolio from Banco Urquijo that heavily exposed it to the industrial sector. In 1985, banker Claudio Boada restructured it, shifting its focus to loans and deposits. In 1991,
Alfonso Escámez
Alphons (Latinized ''Alphonsus'', ''Adelphonsus'', or ''Adefonsus'') is a male given name recorded from the 8th century (Alfonso I of Asturias, r. 739–757) in the Christian successor states of the Visigothic Kingdom in the Iberian Peninsula. I ...
led the Central Bank, while José María Amusátegui was president of the Hispano Americano.
Attempts to merge the two banks began in the 1960s, led by Ignacio Villalonga and Antonio Basagoiti. However, the deal fell through due to concerns from Finance Minister
Juan José Espinosa over the resulting bank's power. Another attempt under Luis de Usera and Escámez also failed, as Usera was not convinced by the proposed share exchange after reviewing the financials.
Discussions between the Central Bank (BC) and Hispano Americano Bank (BHA) resumed in 1989 after a failed merger with
Banesto
Banco Español de Crédito, S.A. (), “Spanish Credit Bank”) better known as Banesto, was a Spanish multinational financial services company. Prior to the Spanish Government's historical intervention in 1993, the first in the history of bank ...
.
On May 14, 1991, a letter of intent was drafted, outlining the absorption of BHA by BC. Escámez was the first president until September 1992, when Amusátegui took over.
The merger meetings occurred on October 30, 1991, with the official registration of BC’s capital increase for the absorption on January 2, 1992. The new "Banco Central Hispano" became Spain's largest private bank, surpassing Bilbao Vizcaya (BBV).
To stabilize during a banking crisis, the new entity sold several inherited banks and appointed Ángel Corcóstegui as CEO in 1994 for restructuring. Central Hispano operated until its merger with Banco Santander was announced on January 15, 1999, forming "Banco Santander Central Hispano." Following this, BCH lost influence; Amusátegui and Corcóstegui both stepped down with substantial severance packages.
See also
*
Former Banco Central Hispano headquarters
References
{{Authority control
Defunct banks of Spain
Banco Santander