The president of Caja Rural del Sur is looking for credit unions
The president of Caja Rural del Sur, José Luis García-Palacios Álvarez, stressed this Thursday that “the scenario” that Spanish credit cooperatives long for, like the one he leads, is that the central government “and our regulator, the Bank from Spain, could consider credit cooperatives as they do in Germany, France and Holland. “
García-Palacios has expressed this desire in the framework of the conference on ‘The credit cooperative, origin, evolution and current situation’, which he has offered at Círculo de la Amistad de Córdoba, after being presented by the president of the Cajasol Foundation, Antonio Pulido, within the Economy and Society Forum, organized by the Association of Manufacturers of Córdoba (Asfaco), and with the assistance, among other authorities, of the fourth vice president of the Diputación de Córdoba, Salvador Blanco.
In this scenario, the president of Caja Rural del Sur expressed the aforementioned desire to remember that “in Germany there are more than 700 credit cooperatives, reaching a market share of almost 30 percent.” In addition, “entities such as the Rabobank in the Netherlands, the DZB Bank in Germany or the Credit Agricole in France are a very clear example of a cooperative, private and orderly bank, which is supported by their governments”.
Therefore, and “with the premise of always looking for alliances” that make them more solid, the Spanish credit cooperatives advance “in joint collaboration”, maintaining their “independence, but, at the same time”, combine “resources and knowledge” to continue betting on the development of our society, through the constant improvement of our services, paying a great attention to the needs of our partners and customers “.
In this context, according to García-Palacios, the entities associated with the National Union of Credit Unions (Unacc) have average total assets (ATM) “of almost 100,000 million euros, loans and deposits worth more than 130,000 million, a net balance of more than 455 million, six million customers and some 700,000 members “, as well as” capital, reserves and sufficient equity to occupy positions of reference among the most solvent entities “in the country.
In the specific case of Caja Rural del Sur, his dedication and way of working with the principles of cooperativism, always thinking of his partners and clients, has led him to be “the second rural cashier in Spain, the fourth credit union and the sixth financial institution in the country in terms of strength and economic solvency “, and this because it” penalizes the size and qualification of the State “.
Specifically, as detailed by its president, Caja Rural del Sur has “with almost 140,000 members, more than 1,100 employees, more than 830,000 customers and just over 330 offices spread across the five provinces” where it has presence, “demonstrating a closeness, capillarity and knowledge of the incomparable environment “.
At the national level, Caja Rural del Sur, as recalled, is integrated into the Caja Rural Group, and are currently “in the final process of establishing an Institutional Protection Mechanism (IPM), recently endorsed at the General Assembly of the Association Spanish Rural Savings Banks (AECR) “, pointing out García-Palacios that,” through the MIP “they create” a guarantee fund that will allow “the rural savings banks to self-manage” duly and to go in support “of” sister entities, in the supposed case of need of support before any contingency “.
But the question, as stressed by the president of Caja Rural del Sur, is that “no rural cash in Spain has needed any help from public funds in the crisis suffered for about ten years, nor would we have to do so in the future, because we apply the principle of prudence and we shield ourselves in this sense “.
“FIVE BIG BANKS”
In any case, the crisis has affected the Spanish financial system, since, according to the president of Caja Rural del Sur, “currently 72 percent of the Spanish financial market share is in the hands of five large banks.”
This, as he has argued, “can have a clear improvement in competitiveness, where the client / consumer can opt for better opportunities in this crazy race to get the client.”
“But it also has another reading,” he continued, “the systemic risk”, because “so much concentration is not given in any European country”, although “perhaps Holland resembles something, but we are not Dutch in thought, nor in customs , nor in a productive model “, while” there are two left of the old savings banks “.
On the other hand, credit cooperatives have almost “doubled” the financial market in Spain, since they already have “six percent in loans and eight percent in deposits”, although they have also reduced the number of entities, “through mergers of mutual interest, as is the case of Caja Rural del Sur,” taking advantage of the opportunity to organize “new and properly, without the need for a single public euro,” he insisted.
In the European Union (EU), both before the crisis and now, “the percentages are distinctly different”, because, as indicated by García-Palacios, “banking occupies 70 percent, credit cooperatives 28 percent and the rest is divided between a figure similar to the savings banks and the new ‘fintech’, approximately. “
NOTICE ABOUT ‘FINTECH’
Precisely, the ‘fintech’ have been, as he recalled, “the last to arrive, swarming over the Internet and come to be some 1,500 virtual entities, of which 60 percent, more or less, are subject to certain regulation”, while the rest submits “to little more than having a license to operate virtually”, so he has wished that “San Pedro blesses” the “people who happen to work” with the ‘fintech’.
These, as noted, in addition to using “the jargon of the new generations, the ‘Millenian’ or even the ‘Generation Z’, allude to kind designations that attract the unwary, as that of collaborative economy”, without fall into the account those who go to the ‘fintech’ that after them “there are only headaches”, in addition to “little responsibility and response.”
In this sense, the president of Caja Rural del Sur has said that “God wants the famous ‘bitcoins’ to remain alone in that, in famous,” because “we have been shown, time and again, that there is no order some, chaos awaits us at the door.”