It doesn't take long for a rumour to spread in a city as
small as Lisbon. At the moment, most of the rumours in the banking
sector are about Banco Comercial Português.
Established as recently as 1985, the bank is a success story that
has won the envy and respect of its rivals and international
commentators. Established under chairman and CEO Jorge Jardim
Gonçalves, BCP has established a domination in both retail and
wholesale finance. And analysts still highlight it as a good bet
for investors in Portuguese banking. The problem is, though, that
those analysts are generally advising investors to keep out of the
sector altogether.
The warning signs for all Portuguese banks have been around for
some time. GDP growth has been slowing since midway through last
year and growth in consumer loans has been steadily falling for
longer. Nor is Portugal immune to the effects of plummeting
brokerage...
