| Foreign banks in Portugal are having to take serious decisions about their future. With market growth slowing and competition increasing, a change of strategy is the least that is needed and some players have decided to quit altogether. Others have adopted a halfway-house position, such as cutting staff and moving operations to Madrid. Of the departing banks, the most notable recent example was Chemical Banking Corporation, which prior to its merger with Chase sold a controlling stake in Banco Chemical (Portugal) to the industrial and financial concern run by Antonio Champalimaud in February. Before that, in 1992, Lloyds sold a substantial retail chain to Banco Bilbao Vizcaya. Those that have compromised include Chase, which reduced its Lisbon branch to a representative office and transferred lending to Madrid. Banque National de Paris has cut down its branch network after reporting hefty provisions and a restructuring. But some foreign banks are made of sterner stuff and refuse to give up even after an abject failure. Crédit Lyonnais, for example, has been in Portugal for close to 100 years and shows no signs of leaving. In 1994 this stalwart of the retail and small corporate sector lost all its capital and had to go cap in hand to Paris to request a complete recapitalization. |