BBVA shares stumble on fee limit proposal in Mexico

11/09/2018 – Reuters

account-bank-blur-164501.jpgMADRID, Nov 9 (Reuters) – Shares in Spanish bank BBVA fell on Friday after a senator from the Mexican president-elect’s party unexpectedly proposed stopping banks from charging certain commissions, deepening fears about the leftist’s economic policy.

BBVA has been relying on Mexico, which is its biggest market and accounts for 41 percent of its overall profits, to offset worsening economic conditions in Turkey and an ongoing squeeze on lending activity in Spain.

“Incoming president (Andres Manuel Lopez) Obrador had previously indicated a more business-friendly approach than the market initially feared, but this proposal will likely increase jitters once more that his policies may prove more interventionist in nature,” Jefferies said in a note.

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