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Abstract

The Spanish banks increased the number of their branches nationwide during the years that preceded the current financial crisis. This development was comparatively greater among the credit cooperatives. The aim of this paper is to analyse the distribution by provinces of this increase in the number of branches of the credit cooperatives and to study the main factors that influenced this strategy. From this analysis, we conclude that the evolution of agricultural incomes or of the availability and use of banking services in each province are very important factors and remain conducive to differentiation between the behaviour of credit cooperatives and that of the rest of the banking system.

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Abstract

The international financial crisis is having a significant effect on the Spanish banking system, traditionally considered one of the most creditworthy of the world. The seriousness of the situation is prompting investigation of new forms of integration that allow greater economies of scale, range or scope, as well as greater optimization of the branch network. In this context, the objective of this paper is to present the concentration of the cooperative saving banks sector in Spain through application of the Herfindahl-Hirschman index. Our work shows that even before the first attempts at integration through the Institutional Protection Systems (SIP), these banks had already expanded their traditionally district- and province-level scope considerably. It also presents the most relevant of the SIP data that are being developed in the field of Spanish credit cooperatives.

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Abstract

The Spanish savings banks are known to be very peculiar financial institutions, not least because they have traditionally assigned a significant proportion of their profits to charitable work (obra social). However, the philanthropic work that the savings banks have always undertaken has now spread to many other companies, in the financial world or otherwise, through what is known as Corporate Social Responsibility. As a result, funds are provided for cultural investments, grants are awarded to non-government organisations and impetus is given to social projects. The Banca Cívica Group founded at the beginning of 2010 by CajaCanarias, Caja de Burgos and Caja Navarra aims to go further, enhancing and intensifying its relations with its clients by implementing transparent, participative mechanisms. By enabling its clients to decide which proposals they want to encourage, it proposes to harness the corporate social responsibility that the group pursues through its charitable work so that the clients will perceive it as their own. This social technology from Banca Cívica therefore involves implementing a new global approach in which the bank redefines itself as a grassroots platform.

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Abstract

This paper evaluates the efficiency and productive change levels of the larger Spanish savings banks (more than 200 branches in operation), using the Data Envelopment Analysis (DEA) non-parametric technique. From the financial data obtained from the CECA website, a efficiency model was implemented for the period 2003-2007. The results, analyzed globally and by Spanish region, show that these organizations generally reach an optimal level of performance, with a moderate increase in productive change which is almost entirely attributable to technological change, although the sharp annual fall in this variable encountered over the entire period under consideration could imply future negative rates of productivity if this trend becomes consolidated, in spite of increased changes in efficiency. Compared with the results for Spanish banks (Guzmán & Reverte, 2008), the efficiency levels of the savings banks are higher but their productivity is lower because of the greater technological advances of the banks.

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Abstract

This article deals with the effects of the financial crisis on the Spanish savings banks and their transition to a new model. Savings banks have been the main targets of the financial restructuring process in Spain, the area where most of the mergers have concentrated and the main subject of a reform that will bring dramatic changes in their legal status. Some will maintain their current status, others will only maintain their status as foundations while their financial business will be managed by a commercial bank, and yet others will virtually become commercial banks, even if the shareholders of the original savings bank will participate and supposedly keep control of the firm and of the management of its Social Work (Obra Social). The whole transformation process may end up strengthening the solvency and market discipline of the savings banks. In any event, the long-run social consequences of these changes are still uncertain.

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Abstract

Spain’s current co-operative laws consider various tools designed to attract resources and finance co-operatives. One of the most original of these is known as participation certificates (títulos participativos). This variant of participation loans which is distinguished by its total or partial remuneration’s consisting of a share in the business development of the issuing co-operative. With the aim of increasing their attractiveness, the law allows these certificates to be represented by securities. It also allows the issue agreement to grant subscribers certain rights in the co-operative (e.g. the right to attend the general meeting with the right to speak but not to vote).

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Abstract

The objective of the present work is to analyze the role that Cooperative Credit plays in financing the entrepreneurship initiatives that arise out of the Social Economy. To this end, the characteristics of the external financing needs of this type of initiative are studied and compared with the peculiarities of cooperative credit in Spain, attempting to identify the points of connection between the supply and demand of these two types of organisation. At present, the economic crisis has caused a considerable restriction in the credit available to companies, which can be detrimental to the creation of companies and to entrepreneurs in general. In this situation, the credit cooperatives can play a positive role in finding sources of finance to suit the circumstances.

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Abstract

Increased competition, coupled with the continued lowering of interest rates until 2005, has pushed down the margins of financial institutions and forced them to seek improvements in profitability through increases in operational efficiency. The current profitability pattern of the Spanish Rural Banks as a whole (a downward trend in returns) is based more on recurrent income than on maintaining operational efficiency based on proper control of operating costs. This entails a progressive loss of competitiveness compared to other financial institutions. However, there are different business models among the Rural Banks, characterized by different patterns of profit generation. In this paper we identify and analyze these business models and draw conclusions about their viability and possible paths to improvement.

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Abstract

The current financial crisis has been seen by many analysts as the trigger for restructuring the Spanish financial system. Together with the savings banks, the cooperative banks need to undertake a reorganization to achieve greater efficiency and competitiveness. The decisions taken to achieve this goal have to consider not only financial factors but also political and social ones in order to guarantee success and sustainability in the long run. This paper identifies the fundamental financial criteria or dimensions that need to be considered in the restructuring process. By means of a mathematical programming model, the weights of the different criteria are calculated and a ranking of cooperative banks is obtained.

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Abstract

The origin of the recession we are experiencing is a banking crisis that has undermined a large part of the confidence of the economic world. Credit cooperatives are unique organisations in the Spanish financial system and possess a network of particular relations with their environment, giving them specific strengths and weaknesses. Their capital structure, closeness to customers in their sphere of operations and social action work give them specific competitive advantages.Given the above context, this paper uses Delphi analysis to identify the peculiarities of the relational capital of credit cooperatives. The credit cooperatives show significant weaknesses in the intangibles most closely linked to the banking business and clear strengths in those that arise from their social capital. As relational capital (especially business capital) is a key factor in banking, the cooperatives need to develop policies to correct these weaknesses and compete in today’s banking market.