1
 As competition heats up in Spain's crowded bank market, 
2
circumstance

2
Banco Exterior de Espana is seeking to shed its image of a state-owned bank and move into new activities.
5001
span

3
 Under the direction of its new chairman, Francisco Luzon, Spain's seventh largest bank is undergoing a tough restructuring 
5004
span

4
that 
5002
span

5
analysts say 
4
attribution-e

6
may be the first step toward the bank's privatization.
5003
Same-Unit

7
 The state-owned industrial holding company Instituto Nacional de Industria and the Bank of Spain jointly hold a 13.94% stake in Banco Exterior.
5007
List

8
 The government directly owns 51.4% 
5007
List

9
and Factorex, a financial services company, holds 8.42%.
5007
List

10
 The rest is listed on Spanish stock exchanges.
5007
List

11
 Some analysts are concerned, however, 
5010
attribution

12
that Banco Exterior may have waited too long 
5010
span

13
to diversify from its traditional export-related activities.
12
consequence-s

14
 Catching up with commercial competitors in retail banking and financial services, 
5012
span

15
they argue,
14
attribution-e

16
 will be difficult, 
5013
Same-Unit

17
particularly if market conditions turn sour.
5013
condition

18
 If that proves true, 
5016
condition

19
analysts say 
5020
attribution

20
Banco Exterior could be a prime partner 
5017
span

21
-- or even a takeover target -- 
20
elaboration-additional-e

22
for either a Spanish or foreign bank 
5018
span

23
seeking to increase its market share after 1992, 
5019
span

24
when the European Community plans to dismantle financial barriers. 
23
temporal-same-time

25
 With 700 branches in Spain and 12 banking subsidiaries, five branches and 12 representative offices abroad, the Banco Exterior group has a lot 
5024
span

26
to offer a potential suitor.
25
elaboration-object-attribute-e

27
 Mr. Luzon and his team, however, say 
28
attribution

28
they aren't interested in a merger.
5026
span

29
 Instead, they are working 
5027
span

30
to transform Banco Exterior into an efficient bank by the end of 1992.
29
purpose

31
 I want this to be a model of the way 
5029
span

32
a public-owned company should be run, 
31
elaboration-object-attribute-e

33
Mr. Luzon says. 
5029
attribution

34
 Banco Exterior was created in 1929 
5040
span

35
to provide subsidized credits for Spanish exports.
34
purpose

36
 The market for export financing was liberalized in the mid-1980s, however, 
5041
span

37
forcing the bank to face competition.
36
consequence-s

38
 At the same time, many of Spain's traditional export markets in Latin America and other developing areas faced a sharp decline in economic growth.
5041
temporal-same-time

39
 As a result, the volume of Banco Exterior's export credit portfolio plunged from 824 billion pesatas 
5044
span

40
($7.04 billion) 
39
restatement-e

41
as of Dec. 31, 1986, to its current 522 billion pesetas.
5045
Same-Unit

42
 The other two main pillars of Banco Exterior's traditional business 
5048
span

43
-- wholesale banking and foreign currency trading -- 
42
elaboration-set-member-e

44
also began to crumble under the weight of heavy competition and changing client needs.
5049
Same-Unit

45
 The bank was hamstrung in its efforts 
5051
span

46
to face the challenges of a changing market by its links to the government,
45
elaboration-object-attribute-e

47
 analysts say.
5051
attribution

48
 Until Mr. Luzon took the helm last November, 
5054
temporal-before

49
Banco Exterior was run by politicians 
5054
span

50
who lacked either the skills or the will 
5055
span

51
to introduce innovative changes.
50
elaboration-object-attribute-e

52
 But Mr. Luzon has moved swiftly 
5058
span

53
to streamline bureaucracy, 
5056
List

54
cut costs, 
5056
List

55
increase capital 
5056
List

56
and build up new areas of business.
5056
List

57
 We've got a lot 
5062
span

58
to do, 
57
elaboration-object-attribute-e

59
he acknowledged.
5062
attribution

60
 We've got to move quickly. 
5063
elaboration-additional

61
 In Mr. Luzon's first year, the bank eliminated 800 jobs.
5067
Sequence

62
 Now it says 
63
attribution

63
it'll trim another 1,200 jobs over the next three to four years.
5066
span

64
 The bank employs 8,000 people in Spain and 2,000 abroad.
5067
elaboration-additional

65
 To strengthen its capital base, 
5069
purpose

66
Banco Exterior this year issued $105 million in subordinated debt, 
5069
List

67
launched two rights issues 
5069
List

68
and sold stock held in its treasury to small investors.
5069
List

69
 The bank is now aggressively marketing retail services at its domestic branches.
5071
span

70
 Last year's drop in export credit was partially offset by a 15% surge in lending to individuals and small and medium-sized companies.
69
elaboration-additional

71
 Though Spain has an excess of banks, 
5078
concession

72
analysts say 
5079
attribution

73
the country still has one of the most profitable markets in Europe, 
5079
span

74
which will aid Banco Exterior with the tough tasks 
5080
span

75
it faces ahead.
74
elaboration-object-attribute-e

76
 Expansion plans also include acquisitions in growing foreign markets.
5083
span

77
 The bank says 
78
attribution

78
it's interested in purchasing banks in Morocco, Portugal and Puerto Rico.
5082
span

79
 But the bank's retail activities in Latin America are likely to be cut back.
5084
Contrast

80
 Banco Exterior was one of the last banks 
5086
span

81
to create a brokerage house 
80
elaboration-object-attribute-e

82
before the four Spanish stock exchanges underwent sweeping changes in July. 
5086
temporal-before

83
The late start may be a handicap for the bank 
5088
span

84
as Spain continues to open up its market to foreign competition.
83
circumstance

85
 But Mr. Luzon contends 
5093
attribution

86
that the experienced team 
5091
span

87
he brought with him from Banco Bilbao Vizcaya, 
5092
span

88
where he was formerly director general, 
87
elaboration-additional-e

89
will whip the bank's capital market division into shape by the end of 1992.
5093
Same-Unit

90
 The bank also says 
5095
attribution

91
it'll use its international network 
5095
span

92
to channel investment from London, Frankfurt, Zurich and Paris into the Spanish stock exchanges.
91
purpose

5001
span
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consequence-n

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3
elaboration-object-attribute-e

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multinuc
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elaboration-part-whole

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multinuc
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interpretation-s

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span
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span

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span
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elaboration-object-attribute-e

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multinuc
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5023
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5024
span
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explanation-argumentative

5025
span
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hypothetical

5026
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5028
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preference

5028
span
5038
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reason

5031
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5032
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5011
explanation-argumentative

5033
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5034
elaboration-additional

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5065
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span
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background

5041
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span

5042
span



5043
span
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span
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Same-Unit

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multinuc
5050
List

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span
5076
span

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span
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result

5048
span
5049
Same-Unit

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multinuc
5050
List

5050
multinuc
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5052
span
5059
span

5053
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5052
consequence-s

5054
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span
49
elaboration-object-attribute-e

5056
multinuc
52
purpose

5057
span
5075
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5058
span
5057
span

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span
5060
Contrast

5060
multinuc
5046
elaboration-additional

5061
span



5062
span
5063
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5063
span
5064
span

5064
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5074
Problem-Solution

5065
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5081
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5067
Sequence

5067
multinuc
5068
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5073
List

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multinuc
5070
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span
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List

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List

5072
span



5073
multinuc
5074
Problem-Solution

5074
multinuc
5057
elaboration-general-specific

5075
span
5060
Contrast

5076
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elaboration-additional

5077
span
5065
comment

5078
span
5077
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5079
span
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span

5080
span
73
elaboration-additional-e

5081
span
5085
span

5082
span
76
elaboration-general-specific

5083
span
5084
Contrast

5084
multinuc
5081
elaboration-additional

5085
span
5098
span

5086
span
5087
span

5087
span
5089
span

5088
span
5087
interpretation-s

5089
span
5097
Contrast

5090
span
5096
List

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span
5093
Same-Unit

5092
span
86
elaboration-object-attribute-e

5093
multinuc
5090
span

5094
span
5096
List

5095
span
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span

5096
multinuc
5097
Contrast

5097
multinuc
5085
elaboration-additional

5098
span



5099
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5034
span

