Finance
Spanish Banking Giant BBVA Reinforces Commitment to Mexico, Sends Top Executive to Chair the Subsidiary
Cristina de Parias will be the new chairwoman for the Mexican branch of the powerful Spanish bank.

BBVA sends its top executive in Spain, Cristina de Parias, to Mexico. While the bank's business in North America is deteriorating and the implications of the Villarejo case, a corruption case that has spilled over to the entity, are spreading in Spain, announced Thursday that De Parias will become a director of the bank's subsidiary in Mexico. Her place as head of BBVA Spain will be taken by Peio Belausteguigoitia, who until now was in charge of Business Development.

The announcement by BBVA comes on the same day that the bank announced a downward adjustment of the bank's business in the United States in the amount of $1.5 billion dollars.

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De Parias, who holds a degree in law from the University of Seville, took over the management of the bank in Spain in 2014 after joining the entity in 2000 and holding various positions. In 2016, she was chosen as the best manager in Spain by the consulting firm Great Place to Work. Among other duties, she was in charge of developing BBVA's digital businesses, to which she gave a strong boost as she had done with the bank's commercial network.

Her move to Mexico, the bank said in a statement, will take place "once the necessary approvals are obtained". "Cristina has done an extraordinary job at the head of BBVA Spain and Peio will continue the franchise's success story," said Onur Genç, BBVA's CEO.

Peio Belausteguigoitia, new head of BBVA Spain.

Belausteguigoitia, the new head of BBVA Spain, has worked for the bank since 1997 and until now was responsible for Business Development, a position that Gonzalo Rodriguez will now hold.

During his tenure, De Parias had to deal with the consequences of the espionage case of former commissioner José Manuel Villarejo in Spain and recently promised that "they will take action" when the justice clarifies what happened. Former BBVA Chairman Francisco González was indicted in November by Spain's Anti-Corruption Prosecutor's Office for the alleged charges against the former commissioner.

BBVA's business in the U.S.

Just before announcing the change of managers in Spain and Mexico, BBVA reported a significant deterioration of its business in the United States. According to the bank, BBVA's subsidiary is reducing its current value by 1.3 billion due to interest rate changes in the United States and the economic slowdown.

The bank insists in a statement that this accounting adjustment, similar to that made by Banco Santander with its subsidiary in the UK, does not imply any cash outflow, so it does not affect the liquidity of the group or the capacity of the bank to distribute dividends.

In the United States, BBVA obtained a profit of 478 million euros between January and September of this year, almost 12% less.

Although BBVA established a branch in New York in 1988 and had been conducting money transfer operations between the United States and Mexico since 1994, it was not until September 2004 that it finally established itself in the country thanks to the purchase of Valley Bank. With this acquisition, the bank laid the foundations for expanding its strategy to areas with a high Hispanic population in the United States.

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