The financial system of Spain, General characteristics of the...

Spanish Financial System

General System Characteristics

Spain's financial system has undergone major changes since 1975 and until the country's accession to the EU, when it adapted to the conditions of the EU. It should be noted that Spain has made a long way in a relatively short period of time - from the extremely backward industrial and financial structure typical of the more than 35-year-old rigid dictatorship of Franco to modern forms of capitalist production and the financial and banking system.

Bank of Spain (Banko de Espana)

The leading role in the Spanish financial system is played by Banko de Espana, which was founded in 1782 by the act of King Charles III in Madrid. Before the reform of 1975 an important role was played by the Institute de Official (ICO ). This financial institution oversaw the state banking institutions, each of which specialized in financial transactions in selected industries, such as industry, shipbuilding, agriculture, etc.

The second level of the banking system - commercial banks, most of which began to form in the second half of the 1970s. They began to rapidly strengthen, many of them became joint-stock companies, specializing in different industries and services. In the early 1990s. in Spain, a banking crisis broke out, the consequences of which was the concentration of banks. At the same time, their influence on the economy and ties with industry groups of the economy increased. Adopted by the Cortes (Spanish Parliament) The Banking Law foresaw the ban on private participation of private banks in industry under the Second European Directive (Directive 89/646 establishes restrictions on data types of banking.)

The largest Spanish banks include a number of commercial and other banks, for example Cams de Ahorros, owned by regional local authorities. As a result of the merger of the two major banks, Cajas de Ahorros-Caixa de Barcelona and Caixa de Pensiones-the first credit institution of Spain appeared, a fairly large commercial bank. Another bank, Cooperativas de Credito, is a private banking cooperative organization that was originally created to promote the country's regional development. There are about 40 such banking organizations in Spain, many of them found themselves in a critical situation in 2008-2009, and they received large financial assistance from the government. Then followed a period of generally more or less sustainable development in 2010 - the first half of 2011. But already in the second half of 2011 and almost all of 2012, the Spanish banking system is experiencing great difficulties due to the inability to pay its debts.

Major commercial banks of Spain

1. Bancaja Group - the sixth largest banking group in Spain, serving more than 3 million customers.

2. Banco Sabadell Group is the fourth largest commercial banking group in Spain after Banco Santander , Popular Espanol. Abroad has branches in London, Miami and Paris. Total assets in December 2010 amounted to more than 97 billion euros.

3. Santander - the largest financial institution in Spain. The bank has more than 14 thousand offices around the world and serves over 80 million customers. Total assets at the end of June 2011 amounted to about $ 1.8 trillion.

4. Bankinter - commercial bank, founded in 1965, is one of the top ten banking groups in Spain. The largest shareholder of the company is the French bank Credit Agricole, which owns a 20% stake. The total assets at the end of 2008 were 53.47 billion euros.

5. Banesto is a 88% retail bank owned by Santander. The daughter of President Santander is the head of this bank. At present, Banesto is the fifth largest banking group in Spain.

6. Bilbao Bizkaia Kutxa (BBK) is the first savings bank in the Basque Country and the fourth in Spain.

7. BBVA - one of the four Spanish banks that make up the core of the Spanish financial system, is also one of the leading banks in Latin American countries.

8. Caja Madrid is the oldest Spanish savings bank, founded in 1702. Currently, it serves more than 7 million customers through a branch network consisting of more than 2,000 branches and 5,000 ATMs throughout Spain. In 2011, Caja Madrid merged with six smaller savings banks, forming the largest retail bank in Spain - Banco Financiero y de Ahorros (BFA).

9. Caixa Balears "Sa Nostra " is the main savings bank in the Balearic Islands.

10. Caixa Catalunya - was founded in 1926 and was the fifth largest savings bank in Spain and the second bank in Catalonia after La Caixa, serving more than 3 million customers. In July 2010, it merged with two other savings banks ( Caixa Tarragona and Caixa Manresa ) with the creation of a new bank, which is the fourth in terms of assets among Spanish savings banks.

11. Caixa Galicia - was the largest financial institution in the Galicia autonomous region, accounting for 25% of the local banking market. In December 2010, he merged with the bank Caixanova, having formed a new credit institution - Nova Caixa Calida.

12. Caja San Fernando is a fairly popular savings bank in the south of Spain.

13. La Caixa is Spain's largest savings bank, formed in 1990 as a result of the merger of Caja de Pensiones and Caja de Barcelona. The bank has the largest network of branches and ATMs in the country (more than 8 thousand) and serves more than 10.5 million customers.

These banks and other financial institutions, although to varying degrees, are experiencing serious difficulties since 2008. The Spanish financial and banking system burdened with debts, is struggling to cope with the situation, resorting to continuous loans in international markets and receiving credit assistance from its government, which in turn is forced to resort to large loans to the EU and the IMF.

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