Banco de Iberia (A)

Banco de Iberia was founded by an investor group at the end of the 19th century, with capital of six million pesetas (36,000 euros). Since then, the bank has maintained a stable stock price and a reputation as a sound institution with proven expertise in universal banking services for personal, corporate and institutional customers.
In 2009 the bank needs to adapt its management structure to the new circumstances, so as to tighten control of expenses and risks.
This can be done in various ways, above all by changing risk criteria and policies, applying stricter credit terms, and emphasizing area audits. There is also the possibility of reinforcing the problem loan and delinquency area by creating a new department, which at some stage could be represented on the executive committee.
Another question is whether the bank should continue with its efforts to rationalize processes and centralize operations, placing a greater workload on central services, including loan origination, loan securitizations, mortgage registration, money laundering prevention, customer identification, and corporate powers of attorney. The reports available indicate that this would be feasible from an organizational point of view.