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53-524: KBC Group is one of Belgium's major companies and the second largest bancassurer in the country. As of late 2020, it was the 15th largest bank in Europe by market capitalisation and a major financial player in Central and Eastern Europe, employing some 41,000 staff (of which more than half in Central and Eastern Europe) and serving 12 million customers worldwide (some 7 to 8 million in Central and Eastern Europe). KBC

106-586: A 2015 report by Belgian NGO Fairfin KBC invested US$ 2.4 billion between 2004 and 2014 through loans and emitting shares and obligations. In contrast the money allocated to renewable energy was only US$ 929 million. When KBC reviewed its sustainability policy in 2016, the Global Network of Non-governmental organisation cooperating in the field of private banks and sustainability, Banktrack published an analysis acknowledging progress made on fossil fuels, while criticising

159-535: A financial planning structure to achieve fiscal advantages and security for wealthy investors and their families. The banks are the agent of the insurance companies to sell them more and more policies. Bancassurance is an efficient distribution channel with higher productivity and lower costs than the traditional distribution channel. In the modern bancassurance module, there has a staff assigned by an insurance company placed in particular banks to serve banking customers with their insurance solutions. ' Integrated models'

212-417: A gradual evolution in the products offered from a protection business closely related to the banks lending activity to a general savings business and finally to a wider range of protection products. In many countries, the choice of a business model is influenced by regulatory constraints (e.g., the minimum qualification required to sell insurance products, the type of products that banks are allowed to sell, or

265-736: A group of prominent Catholics founded the Volksbank van Leuven ("People's Bank of Leuven"), a cooperative bank to finance the development of business in and around Leuven . In the early 1890s, the Boerenbond farmers movement, similarly inspired by Catholicsm and corporatism and also based in Leuven, led the development of burgeoning network of rural cooperative banks inspired by the model created in Germany by Friedrich Wilhelm Raiffeisen . The first of these Spaaren Leengilden ("savings and loans associations")

318-583: A highly publicized liquidation process. The restructuring, including a reimbursement of depositors that would only be completed in 1963, was directly managed by the Belgian government and led by Albert-Édouard Janssen . On 9 February 1935, ABV and BHN Kortrijk merged to form the Kredietbank voor Handel en Nijverheid , commonly known as Kredietbank (KB). The Kredietbank was registered in Antwerp but its actual head office

371-608: A loss of 95% over a period of 22 months, during the Great Recession . The bank needed and received support from the Flemish government for an amount of 3.5 billion Euros. After the crisis the bank embarked on a divestment programme to satisfy the requirements of the European Commission . As such, it sold several subsidiaries, including Centea, Fidea, Kredyt Bank, ADB, KBC Deutschland, Absolut Bank and KBL European Private Bankers ,

424-438: A minimum qualification. Banks have therefore set up networks of financial advisers authorised to sell regulated insurance products. They usually operate as tied agents and sell exclusively the products manufactured by the bank's in-house insurance company or its third-party provider(s). A proactive approach is used to generate leads for the financial advisers from the customer base, including through mailings and telesales. There

477-524: A minority shareholder, and the control of the group was transferred to a group of families later known as the "Almanij Syndicate", which by the 1970s included Collin and André Vlerick , a son-in-law of Gustave Sap who had been associated with the Algemeene Bankvereeniging since its creation. In 1949, Kredietbank established its first international subsidiary, Kredietbank SA Luxembourg (known as KBL). In 1951, Kredietbank's shares began listing on

530-534: A number of industrial company stakes. As a consequence, the Boerenbond-controlled banking cluster became one of Belgium's largest credit institutions, able to rival the Banque de Bruxelles and Generale Bank . The Boerentoren high-rise building in Antwerp, financed by ABV, was the second-tallest skyscraper in Europe at the time of its completion in 1931, just behind Madrid's Telefónica Building (1929). It became

583-503: A presence in some thirty countries. KBC Project Finance is a subsidiary of KBC Bank, and has been an active player in the non-recourse financing of projects since the early 1990s. Headquartered in Dublin , it also has professionals based in London, Brussels, New York, Hong Kong, and Sydney. Its main business lines are Energy and Infrastructure. This includes financing projects in sectors such as

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636-649: A target of bombings during the war. Ernest Hemingway , John Dos Passos and Antoine de Saint-Exupéry sent their reports from inside the premises, controlled by the Republican foreign press censhorship office, whose head was Arturo Barea . The Telefónica Building rises to 89 metres. It comprises 14 high-ceiling floors plus a basement, a semibasement and a central tower, which is currently topped by mobile communication antennas. It can be seen from many places in Madrid city centre. From 1967 to 2013, its red lit clock has become

689-578: A vehicle of the Boerenbond farmers' association, at 12%; a group of industrialist families, at 8%; and CERA directly, at 3%. Its shares are traded on the Euronext exchange in Brussels. KBC has been designated as a Significant Institution since the entry into force of European Banking Supervision in late 2014, and as a consequence is directly supervised by the European Central Bank . On 17 July 1889,

742-426: Is a Forbes Global 2000 company. The group is controlled by a group of core shareholders, and has a free float of approximately 60%. The core shareholders include KBC Ancora, a listed company controlled by CERA (or Cera cvba  [ nl ] , a holding company formed by the cooperative clients of CERA Bank at the time of the 1998 merger), owning 19%; MRBB ( Maatschappij voor Roerend Bezit van de Boerenbond ),

795-650: Is a controversial idea, and many feel it gives banks too great control over the financial industry or creates too much competition with existing insurers. In some countries, bank insurance is still largely prohibited, but it was recently legalized in countries such as when the Glass–Steagall Act was repealed after the passage. But revenues have been modest and flat in recent years, and most insurance sales in U.S. banks are for mortgage insurance, life insurance or property insurance related to loans. But China recently allowed banks to buy insurers and vice versa, stimulating

848-400: Is an increasing focus on developing relationships with a large number of customers who rarely or never visit a bank branch. Financial planners are typically employed by the bank or building society rather than the life company and usually receive a basic salary plus a bonus element based on a combination of factors including sales volumes, persistence, and product mix. Following the reform of

901-488: Is expected to accrue with the deregulation taking place in several Asian countries and in the UK. Bancassurance encompasses a variety of business models. These business models generally fall into three categories: The business model tends to impact all aspects of the bancassurance activity including the company structure, sales and marketing, product design, and sales remuneration. In most countries, bancassurance has tended to see

954-444: Is insurance activity deeply integrated with bank's processes. Premium is usually collected by the bank, usually direct debit from the customer's account held in that bank. New business data entry is done in the bank branches and workflows between the bank and the insurance companies are automated. In most cases, asset management is done by the bank's asset management subsidiary. Insurance products are distributed by branch staff, which

1007-578: Is no evidence showing the precise extent of the relationship between the two. The collapse of Fortis in Belgium, and the withdrawal of other players from the bancassurance market, since the crisis, has led to a reduced level of interest in this area. Telef%C3%B3nica Building The Telefónica Building , in Spanish Edificio Telefónica , is a skyscraper in Madrid , Spain , which serves as

1060-556: Is sometimes supported by specialised insurance advisers for more sophisticated products or for certain types of clients. Life insurance products are fully integrated with the bank's range of savings and investment products and the trend is for branch staff to sell a growing number of insurance products that are becoming farther removed from its core business, e.g., protection, health, or non-life products. Products are mainly medium- and long-term tax-advantaged investment products. They are designed specifically for bancassurance channels to meet

1113-628: The Brussels Stock Exchange , even though Almanij retained control. In 1952, Kredietbank expanded into the Belgian Congo by establishing a branch in Léopoldville , then in 1954 acquired Banque Congolaise pour l’Industrie, le Commerce et l’Agriculture and renamed it Kredietbank-Congo. That operation grew into four branches, in Léopoldville (now Kinshasa ), Bukavu , Elizabethville (now Lubumbashi ), and Stanleyville (now Kisangani ), but

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1166-901: The Cayman Islands , and a subsidiary in Geneva . In 1970, together with six other European institutions, Kredietbank established the Inter-Alpha Group of Banks . In 1979, controlling ownership of KBL was transferred from Kredietbank directly to Almanij. In 1982, Kredietbank acquired majority ownership of Bankverein Bremen AG , originally founded in 1889 as Bremer Vorschussverein , and renamed it Kredietbank-Bankverein AG in 1990, also known as Bremer Kreditbank  [ de ] or BKB. In 1996, KBL absorbed Banque continentale du Luxembourg  [ fr ] . In 1997, Kredietbank expanded into Hungary through

1219-561: The Hybrid Insurance Model ( HIM ), is a mix between BIM and TIM. HIM insurance companies may have a sales force, may use brokers and agents and may have a partnership with a bank. BIM is extremely popular in European countries such as Spain , France , and Austria . The use of the term picked up as banks and insurance companies merged and banks sought to provide insurance, especially in markets that have been liberalised recently. It

1272-454: The point of sale and point of contact for the customer. Bank staff are advised and supported by the insurance company through wholesale product information, marketing campaigns and sales training. The bank and the insurance company share the commission. Insurance policies are processed and administered by the insurance company. This partnership arrangement can be profitable for both companies. Banks can earn additional revenue by selling

1325-626: The registered office of the namesake telecommunications company . It is located in Gran Via 28. At the time of construction it was the tallest European skyscraper with 89 m of roof height, until in 1940, when the Terrazza Martini Tower opened in Genoa . The Telefónica Building was designed by Ignacio de Cárdenas, who conceived it after a previous study of Louis S. Weeks in Manhattan . Even though

1378-562: The Czech Republic ( ČSOB ), Slovakia (ČSOB and OTP Banka), Hungary ( K&H Bank ) and Bulgaria (CIBank and UBB Bank ). In all of these countries, KBC Bank is a leading player by market share. It also had a substantial presence in Ireland through its subsidiary KBC Bank Ireland (formerly IIB Bank). The sale of substantially all assets of KBC Bank Ireland to Bank of Ireland was completed on 2 February 2023. In all, KBC Bank has established

1431-575: The Middenkredietkas decided to reduce its exclusive dependence on the CGER and established a permanent relationship with the Volksbank van Leuven for the management of some of the farmers' savings. After World War I , the Middenkredietkas strengthened its structural cooperation with the Volksbank van Leuven, which in 1919 had transformed itself into a joint-stock company. The two institutions jointly sponsored

1484-466: The bancassurance product, and some major global insurers in China have seen the bancassurance product greatly expand sales to individuals across several product lines. Private-bankassurance is a wealth management process pioneered by Lombard International Assurance and is now used globally. The concept combines private banking and investment management services with the sophisticated use of life assurance as

1537-462: The building is of American inspiration, Cárdenas touch can be felt in its churrigueresque exterior ornamentation, a nod to Madrid Baroque architecture . Its construction started in 1926 and it was fully completed in March 1929, despite opening its doors officially on 1 January 1930. The workforce was composed of more than 1000 workers and the final cost added up to 32 million pesetas . It became one of

1590-464: The city's outskirts in 1991. In the mid-1980s, a new legal framework led to the creation in 1986 of CERA Bank as a fully-fledged central banking entity. On 3 June 1998, CERA Bank, ABB, and Fidelitas (the insurance arm of Almanij ) merged into Kredietbank NV, whose name was changed to KB ABB Cera Bank and Insurance Holding Company NV . On 27 April 2000, the group's parent entity was renamed KBC Bank and Insurance Holding Company NV . On 2 March 2005, that

1643-453: The complaint, KBC and KBL together "were responsible for facilitating up to 70% of all illegal arms transactions that allowed the apartheid government to secretly buy weapons despite mandatory UN arms sanctions." As part of that process, OpenSecrets and CALS submitted a detailed document to the OECD contact points in Belgium and Luxembourg to support their claim. At the same time, hearings were held on

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1696-640: The creation or acquired control of several other banks in Dutch-speaking Belgium, including the Algemeene Bankvereeniging (ABV, "General Banking Association"), founded in 1921 in Antwerp , and two banks named Bank voor Handel en Nijverheid (BHN, "Bank for Trade and Industry") respectively in Ghent and Kortrijk . On 1 October 1928, ABV and the Volksbank van Leuven merged. The new entity, which kept

1749-433: The exception for the Czech Republic as well, saying “the exceptions for coal activities in the Czech Republic don’t comply with the strict deadlines imposed by climate science.” Bancassurance Bancassurance is a relationship between a bank and an insurance company that is aimed at offering insurance products or insurance benefits to the bank's customers. In this partnership, bank staff and tellers become

1802-485: The exception for the Czech Republic where the bank continues to finance coal, saying “the new general restriction on coal is welcome and positive, however the exception applied to Czech coal companies is concerning." In 2017 the Belgian Climate Coalition published a report charting the investments in fossil fuel of the four major banks in Belgium (KBC, ING, BNP Paribas and Belfius). In this report they attacked

1855-667: The first skyscrapers in Europe. It also held the Madrid height record by surpassing the Palacio de la Prensa , which it maintained until it was overtaken in 1953 by the Edificio España . During the Spanish Civil War it was used as an observatory by the Republican forces to watch the whereabouts of Francoist troops. This reason, and the fact of being the Office of Foreign Press, made it

1908-463: The following decades became one of the largest Belgian insurers. The number of Belgian Raiffeisen banks was about 800 in the early 1970s, then further decreased through consolidation to reach 218 in 1996. In 1970, the CKL changed its name to Centrale Raiffeisenkas ("Central Raiffeisen Fund"), which in the late 1970s was abbreviated to CERA; it moved from downtown Leuven to an expansive new office campus in

1961-688: The insurance products, while insurance companies are able to expand their customer base without having to expand their sales forces or pay commissions to insurance agents or brokers . Bancassurance has proved to be an effective distribution channel in a number of countries in Europe , Latin America , Asia , and Australia . BIM ( Banking Insurance Model ) differs from the classic or Traditional Insurance Model ( TIM ) in that TIM insurance companies tend to have larger insurance sales teams and generally work with brokers and third-party agents. An additional approach,

2014-950: The latter being acquired by Precision Capital , owned by Hamad bin Jassim bin Jaber Al Thani , for a reported €1.05 billion in October 2011 and renamed Quintet Private Bank in 2020. The divestment programme was completed in 2014 and the state aid entirely paid back by 2015, five years ahead of the agreed schedule. Since then the KBC share price recovered to around a maximum of €75 in the month of January 2022. In 2017, KBC acquired United Bulgarian Bank (UBB) and Interlease in Bulgaria. On 7 July 2022 KBC Bank acquired Raiffeisenbank (Bulgaria) EAD from Raiffeisen Bank International and rebranded it KBC Bank Bulgaria . On 10 April 2023 KBC Bank Bulgaria has been merged into United Bulgarian Bank. In February 2017, Ireland

2067-478: The matter at South Africa's People's Tribunal on Economic Crime led by Zak Yacoob in Johannesburg . In December 1999, the Brussels commercial court ordered CERA Holding to pay an additional 2.48 billion euros to its cooperative shareholders, based on the finding that their contribution had been undervalued in the 1998 merger. KBC has been criticised for its investment policies regarding fossil fuels. According to

2120-539: The name Algemeene Bankvereeniging, was controlled by the Middenkredietkas; in 1930 it acquired BHN Ghent, which in the meantime had merged with a number of other local banks in East Flanders , and in October 1931 purchased another financial group, the Crédit Général de Belgique also known as Crédital . The latter combination resulted in the creation in 1931 of the holding company Almanij in Antwerp, which received

2173-414: The nature of the relationship between banks and insurance companies). Bancassurance can be an efficient distribution mechanism with potentially higher sales and lower costs than traditional, segregated, distribution channels, in other words, in additional cost and revenue synergies . These advantages are positively correlated to the degree of integration of the banking and insurance products, although there

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2226-590: The needs of branch advisers in terms of simplicity and similarity with banking products. In particular, these products often have a low-risk insurance component. Bank branches receive commissions for the sale of life insurance products. Part of the commissions can be paid to branch staff as commissions or bonuses based on the achievement of sales targets. ' Non-integrated Models' – The sale of life insurance products by branch staff has been limited by regulatory constraints since most investment-based products can only be sold by authorised financial advisers who have obtained

2279-465: The oil & gas industry, power, renewable energy , and Public-Private Partnership . It has a portfolio in excess of US$ 5bn, financing approximately 250 projects worldwide. The private art collection of KBC is situated in the Rockox House in Antwerp. In 2019, Harvard Business Review ranked KBC's CEO Johan Thijs as the 8th best performing CEO in the world. One of Kredietbank's main shareholders in

2332-406: The polarisation regime, banks will have the possibility to become multi-tied distributors offering a range of products from different providers. This has the potential to strengthen the position of bancassurers by allowing them to meet their customers' needs. Bancassurance plays a major role in worldwide insurance and dominates several major European markets such as France and Italy. Its market share

2385-800: The postwar period, André Vlerick , was actively involved in public advocacy of the Apartheid -promoting regime of South Africa and support of its circumvention of sanctions. In April 2018, NGO OpenSecrets , in partnership with the Centre for Applied Legal Studies (CALS) at the Georgetown University Law Center , filed a complaint at the OECD , claiming that KBC and KBL had violated the Organization's Guidelines for Multinational Enterprises in their dealings with South Africa between 1977 and 1994. According to

2438-581: The privatization of K&H Bank . During the Middenkredietkas's liquidation in March 1935, the Boerenbond renamed its rural cooperatives as Raiffeisenkassen , and formed a new central body in Leuven, the Centrale Kas voor Landbouwkrediet (CKL, "Central fund for agricultural credit"). In 1941, its insurance operations developed since the late 19th century were renamed Assurantie van de Belgische Boerenbond (ABB, "Belgian Farmers' Union Insurance") and in

2491-552: The symbol of the Boerengroup's financial might, to the dismay of some of the Catholic clergy including Cardinal Jozef-Ernest van Roey who feared that the farmers' movement was drifting away from its religious roots and towards commercialism. With financial stress increasing in the early 1930s, however, the Middenkredietkas accumulated losses and had to declare a moratorium on its liabilities on 3 December 1934, followed on 8 March 1935 by

2544-501: The table: BEL = Belgium Business Unit, CZR = Czech Republic Business Unit, IMA = International Markets Business Unit, GRP = Group Centre. KBC Bank is the main subsidiary. Its first home market is Belgium, where it is one of the top three banks, with a 20-25% market share and over three million customers (counting the customers of the subsidiaries in Belgium). Its second home market is Central Europe, served via subsidiaries and investments in

2597-620: Was created in 1892 in the village of Rillaar  [ nl ] near Aarschot . By 1895, there were 24 Spaaren Leengilden ; that year, the Boerenbond established the Middenkredietkas ("central credit fund") as a central body to help them manage their customers' savings and access funding from the Caisse générale d'épargne et de retraite , a national financial institution. In 1902, the network had grown to 190 local savings banks, and would further expand to 378 by 1913 and 1099 in 1934. In 1903,

2650-511: Was defined as a new core market of KBC Group, but in April 2021, KBC entered into talks with Bank of Ireland to sell its performing loan book and announced its intention to withdraw from Ireland. As of 2022, the KBC group is focused on five countries: Belgium, Bulgaria, Czech Republic, Hungary, and Slovakia. KBC Group NV is the direct parent company of: All other KBC Group companies are direct or indirect subsidiaries of these. The main ones are shown in

2703-561: Was discontinued in 1966 following Belgian Congolese independence in 1960. In 1958, Kredietbank expanded into Wallonia through the acquisition of local banks, which it merged in 1961 into a newly formed subsidiary named Crédit Général . Kredietbank further built up its international network in the late 1960s, with the opening of offices in New York and Mexico City , then in Johannesburg , Melbourne , Atlanta , Tehran , Tokyo , Madrid , and Los Angeles , and branches in New York , London ,

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2756-525: Was established in Brussels . Fernand Collin , who became its president in 1938, defined the Kredietbank as an independent bank with a decidedly Flemish character which would be an instrument to further Flemish economic growth. In 1943, Almanij, which had become Kredietbank's majority owner during the 1935 restructuring, underwent a capital increase. As a consequence, the Middenkredietkas (in liquidation) became

2809-799: Was shortened to KBC Group NV simultaneously with merger with Almanij , the former holding company. In 1999, KBC acquired majority control of Československá obchodní banka , a prominent bank in the Czech Republic and Slovakia. In 2001-2002 it took control of Kredyt Bank  [ pl ] in Poland. By 2007, it had made further acquisitions in Bulgaria (DZI Insurance, DZI Invest and EIBANK), Romania (KBC Securities Romania, Romstal Leasing and INK Insurance Broker), Russia (Absolut Bank), and Serbia (KBC Banka and Senzal, Hipobroker, and Bastion). In 2008, it purchased Istrobanka in Slovakia from BAWAG . The stock price dropped from 106€ on 18 May 2007 to 5€ on 6 March 2009,

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