European Union co-opetative bank system: the spanish model

Abstract

In practically all European countries, co-operative credit societies have evolved towards a system which is comparable to other financial groups. The co- operative bank model has 4,662 local and regional banks, 58,225 branches, more than 44 million partners, 126 million customers, 674,305 employees and a 17% market share of deposits. The co-operative system has been developed fundamentally in France, Holland, Finland and Germany. The fact in these countries the co-operative bank has achieved clearly a significant markets share of deposits and credits. This paper explores the recent evolution of Spanish credit co-operatives and especially rural savings banks. The creation of “Group Caja Rural” in 1989, which 96% of rural savings banks belong to, has meant the greatest commitment to the integration of Spanish credit co-operatives in the face of the challenges of economic globalisation and the great changes in the national and international financial system. The running of this Group is through a vertebrate structure, in co-ordination and representation aspects as well as in operative functions. The effectiveness of the system of association is apparent in the yearly increase of its market share.