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64-402: Originally a savings bank ( caja ) , it reorganized in the 2000s and 2010s: Its commercial assets are managed under its subsidiary CriteriaCaixa , which also has partial ownership of La Caixa's old banking business CaixaBank ; those are used to fund La Caixa's Obra Social — social, cultural, scientific, and civic projects for the public good. The foundation commonly dates itself to

128-464: A savings bank ( Spanish : caja de ahorros or informally just caja , Catalan : caixa d'estalvis , Galician : caixa de aforros , informally ' caixa' , Basque : aurrezki kutxa ) is a financial institution that specializes in accepting savings deposits and granting loans . Spanish banks fall into two categories: Privately owned banks ( bancos ) and government owned banks ( cajas —literally pay office, or pay desk). The original aim

192-558: 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 . The firm was formed in 2007 as Criteria CaixaCorp, a publicly traded vehicle for La Caixa's shareholdings and investments in both industrial and financial services companies. At the time of its 2007 debut, the Criteria CaixaCorp initial public offering

256-688: A charity. After this the banks became autonomous with a governing board of six to 20 principals (working pro bono) holding responsibility for the strategic direction and overall affairs of the banks. Both in Portugal and Spain the most common source of the set-up fund was the local Mount of Piety . These Mounts of Piety (a literal translation from "Montes de Piedad") were early modern charitable institutions where advances were made against some kind of collateral in pawn (usually, jewellery or clothes). Consequently, Spanish savings banks accepted low-value and low-volume savings in deposit and, in turn, placed these funds in

320-463: A dual label to indicate that they also belong to CaixaBank. On 19 July 2013 the merger deed of Banco de Valencia and CaixaBank was registered in the commercial register, and the integration of Banco de Valencia into CaixaBank became fully effective. After the absorption of Banco de Valencia by CaixaBank , both the offices of La Caixa and those of Banco de Valencia in the Region of Murcia regained

384-410: A period of ten years in certain assets held by Banco de Valencia. On 26 September 2013, CaixaBank approved the sale of its real estate unit Servihabitat to a joint venture between the bank and private equity fund Texas Pacific Group (TPG) for an initial price of €310 million. CaixaBank's parent company, financial group La Caixa, said it estimated it would bring in €317 million in capital gains from

448-584: A preference for initial investment to come from the private sector while individual institutions would provide for some form of guarantee to secure funds held in deposit. Financially, however, the model of 1835 was very weak. Hence, in 1839 a new piece of legislation introduced the "French model" where individual savings banks were linked with a " Mount of Piety ". Unlike the Scottish savings banks, French-style savings banks created an initial fund to cover set-up costs and unexpected losses through donations and setting up

512-534: A process of reorganization within the group, which would involve, on the one hand, the dissolution and liquidation of the La Caixa Foundation and, on the other hand, the transfer to Criteria CaixaHolding (100% of La Caixa) of the participation in CaixaBank . On 22 May 2014, the general assembly of La Caixa approved its transformation into a banking foundation. The foundation was established on 17 June 2014. As

576-553: A result, on the one hand, the dissolution and liquidation of the La Caixa Foundation would occur, with the overall transfer of its assets and liabilities in favour of the La Caixa Banking Foundation, and, on the other hand, the transfer in favour of Criteria CaixaHolding of the participation of the Caixa at CaixaBank, so that the banking foundation would go on to hold its stake in CaixaBank through Criteria CaixaHolding , and

640-423: A subsidiary in which the majority of shares are held by the same savings bank (74%), which adopted the name of CaixaBank , and was formerly known as Criteria CaixaCorp. In this way La Caixa ceased to conduct retail banking business, and its only activity was limited to the maintenance of La Caixa Social Work Project. Although the savings bank no longer operates financially, CaixaBank decided, in its offices and in

704-717: Is Spain's third-largest lender by market value, after Banco Santander and BBVA . CaixaBank has 5,397 branches to serve its 15.8 million customers, and has the most extensive branch network in the Spanish market. It is listed in the Bolsa de Madrid and is part of the IBEX 35 . The company consists of the universal banking and insurance activities of the La Caixa group, the telecommunications company Telefónica and its holdings in several other financial institutions. CaixaBank has been designated as

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768-529: Is conducting a "gradual process" of adjusting its branch networks on 9 January 2013. CaixaBank SA sold 13.1 billion pesos of shares in Grupo Financiero Inbursa SAB to both bolster trading in the Mexican lender controlled by billionaire Carlos Slim and replenish money lost amid Spain's property crash. Following the merger of state-owned Bankia and private CaixaBank, Criteria Caixa (and, therefore,

832-465: Is publicly traded, remained at the helm of the banking business, the insurer (SegurCaixa) and the more financially attractive shares in foreign banks and in Telefónica and Repsol . In September 2011, CaixaBank acquired Bankpyme's banking and fund management business. In March 2012, the group announced an agreement whereby it acquired for 979 million euros and subsequently integrated within CaixaBank

896-617: The Caja de Barcelona , and La Caixa, also formerly called the Caja de Pensiones , merged to form the Caja de Ahorros y Pensiones de Barcelona , which itself continued the name "La Caixa". In 1995, La Caixa opened the first international representative offices in Porto , Portugal and Brussels , Belgium . In November 2006, the Board of Directors of La Caixa approved the IPO of its investee portfolio, through

960-688: The " Caja de Pensiones " and later "La Caixa". At the time of the 1990 merger, the Caja de Barcelona was the third largest savings bank in Spain. The Caja de Pensiones para la Vejez (English: Old Age Pension Society ) was formed in 1904 in Catalonia by Francesc Moragas, and opened to the public in 1905, expanding to the Balearic Islands in 1915. It merged with the Caja de Ahorros del Empordà in 1915, taking on

1024-423: The 1920s assets in savings banks started to abandon their charitable nature and gradually turned into broader financial intermediation institutions. Growth was limited because competitive pressure to find new opportunities within the private commercial banking sector resulted in a policy of expansion of the geographic scope of retail branches networks and diversification of sources of business. These strategies brought

1088-462: The 1990 creation of the Caixa d'Estalvis i Pensions de Barcelona ( Spanish : Caja de Ahorros y Pensiones de Barcelona , "La Caixa" ) as a merger of the Caja de Ahorros y Monte de Piedad de Barcelona founded in 1844 and commonly known as Caja de Barcelona , founded in 1844, with the Caja de Pensiones para la Vejez y de Ahorros de Cataluña y Baleares , founded in 1904 and commonly known as

1152-414: The 21st century, crises had affected commercial and investment banks, but not cajas. The reasons why the cajas imploded can be traced back to a 1985 act which altered the composition of the governing bodies by trusting the boards of directors to political parties and trade unions. Over time, the financial crisis unveiled what has been defined as "a culture of greed, cronyism and political meddling" within

1216-472: The Bank of Spain authorised the first automated teller machine for the savings banks and by 1996, their combined network had 14,169 machines, the biggest network in Spain and the third largest in the world. In the aftermath of the 2007–2008 financial crisis , the Spanish real estate market collapsed, taking Spain into its very own financial crisis. As a matter of fact, over 150 years of financial history up until

1280-669: The CSB was to co-ordinate the actions of private commercial banks as their economic power became more important. By the beginning of the Spanish Civil War (1936–1939), private commercial banks dominated financial markets, and were organised through the cartel that built around the Consejo Superior Bancario and supervised by the Ministry of Employment, Commerce and Industry (and later on by the Ministry of Employment and Welfare). During

1344-503: The Finance Ministry to start regulating the sources and applications of their funds. As a result, the Finance Ministry directed a growing proportion of the assets of savings banks to finance public debentures and private banks' short-term liabilities, with the added result that the policy significantly reduced funds available for agricultural projects and other traditional lending activities. The second episode of regulatory change for

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1408-598: The La Caixa Foundation took place on 16 October 2014 while the transfer of the stake in CaixaBank took place on 14 October 2014. On 26 June 2014, the president of CaixaBank and until then president of the savings bank, Isidro Fainé, was elected president of the Board of Trustees of the La Caixa Banking Foundation. The La Caixa Banking Foundation manages the Group's shareholdings through Criteria Caixa (formerly Criteria CaixaHolding ), an equity instrumental company fully controlled by

1472-446: The La Caixa Foundation. In 2018, the La Caixa Banking Foundation had an allocated budget of 520 million euros. The foundation, one of the most significant worldwide, supported more than 11 million people in 2017, through nearly 50,000 initiatives. According to the OECD , La Caixa Banking Foundation's financing for 2019 development increased by 58% to US$ 33.9 million. On September 3, 2020, it

1536-485: The SIP ( Institutional Protection Scheme ) formed by Cajasol (including Caja de Guadalajara), Caja Navarra, CajaCanarias and Caja de Burgos, commercially known until then as Banca Cívica (Civic Bank). The "Civic Bank" brand was discarded and the SIP was liquidated, transferring its clients, offices and assets to CaixaBank . However, due to its cultural roots, the entity decided to maintain the savings banks' logos that gave rise to

1600-629: The Scottish savings bank model early on were those in which traditional Protestant values of self-help and the ideas of Jeremy Bentham and Thomas Malthus were particularly influential. Such was not the case in Portugal and Spain where savings banks started rather late (1836 and 1839, respectively) and followed the French model (established in 1818). The Minister of the Interior Diego de Medrano introduced regulations by Royal Order on April 3, 1835, he

1664-515: The Spanish financial system and introduced regulation that handicapped traditional savings banks. The supervision of the savings banks was transferred from the Ministry of Interior to the Bank of Spain . The first episode of regulatory change for the savings banks saw increased regulation, and the overwhelming majority of new savings banks that were established between 1939 and 1977 were set up by local and central governments (with some notable exceptions like

1728-634: The achievements of the savings banks and as a result, the cajas rurales were eventually absorbed by the savings banks. Between 1870 and 1900 the financial strength of savings banks increased significantly. During this period, the pawn and emergency loan operations of the Mount of Piety were unable to absorb all deposits made at the savings bank. Unlike savings banks in other European countries, Spanish savings banks were not required to purchase government debt with excess resources. Instead, savings banks began making short-term advances and issuing mortgages directly to

1792-520: The bank announced its decision to move its legal headquarters to Valencia as a response to political uncertainty in Catalonia . A few days later the bank decided to also move its fiscal domicile to Valencia. On 4 September 2020, it was confirmed that CaixaBank and Bankia are negotiating for a potential merger. The merger would create the biggest domestic bank in Spain with assets under management of €650 billion. The acquisition of Bankia by CaixaBank

1856-495: The cajas, including boards stuffed with political placements generally incapable of analysing the banks' books, often limiting themselves to rubber-stamp decisions. Board members typically rewarded themselves with well-paid positions, luxury foreign trips and soft loans. After the bust, out of the 45 cajas in existence at the start of the crisis in 2007, only two ( Caixa Ontinyent  [ es ] and Colonya, Caixa Pollença  [ es ] ) survived in their initial form;

1920-406: The co-operativist Caja Laboral ). The Franco regime continued implementing a practice developed during the 1920s called the principle of territoriality , meaning that the business of each savings bank was restricted to its home province . This principle remained an informal arrangement until it was enacted into law in 1964. At the same time, the increasing asset base of the savings banks prompted

1984-593: The commercial relationship with its customers, to use the commercial pseudonym of La Caixa, leaving the brand "CaixaBank" solely for institutional use. At the same time, in July 2011, another subsidiary of the group was created, in this case 100% owned by La Caixa, called Criteria CaixaHolding , which would not list on the stock exchange and would bring together the less attractive stocks such as real estate services (Servihabitat) and industrial holdings ( Gas Natural Fenosa , Abertis ...) and PortAventura World . CaixaBank which

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2048-501: The company Criteria CaixaCorp, which became effective on 10 October 2007. In January 2008, La Caixa bought part of Morgan Stanley's private banking business in Spain for almost 600 million euros and in 2010, the group acquired Caixa Girona , being one of the three savings bank integration operations that did not require assistance from the FROB (Fund for the orderly restructuring of the banking sector). On 29 January 2008, Criteria CaixaCorp

2112-427: The competitive challenge of private commercial banks to markets being serviced by savings banks. Individual savings banks enhanced their profile within their local communities as greater asset size allowed them to increase the funding of social welfare- and agricultural projects ( Obra Social , a practice that is nowadays part of their corporate social responsibility ). However, a new approach to how people saved and to

2176-475: The deal. In June 2014 CaixaBank's Board of Directors appointed Gonzalo Gortázar as their new CEO, having approved the resignation by mutual consent of Juan María Nin as Deputy Chairman and CEO. In his first interview since becoming CEO, Gonzalo Gortázar stated "There are a number of priorities for CaixaBank. The first one is dealing with the last legs of the crisis. We want to normalize the balance sheet and we want to normalize funding costs." On 6 October 2017,

2240-550: The debt instruments of which La Caixa was the issuer. In this way, the group led by the new La Caixa Banking Foundation would have as main activities: the management of the entire Social Work, those of a financial nature related to the management of its participation in CaixaBank, the administration of the debt instruments that have La Caixa as an issuer, and the management of investments in industries other than finance grouped so far in Criteria CaixaHolding . The liquidation of

2304-501: The development of this phenomenon as it pioneered exemption from having to pay different forms of capital gains and corporation's tax for mortgages issued by the Mount of Piety. Most early-established savings banks had located in the biggest urban centres, and grew in financial strength through retained surpluses. By the turn of the century most assets were held in the savings banks located in seaports and industrial cities. Between 1900 and 1925

2368-707: The firm to the new entity Criteria CaixaHolding, 100% owned by La Caixa. CaixaBank retained stakes in Repsol YPF and Telefónica as well as all of its holdings in other financial services companies. On 26 March 2012 CaixaBank announced its intention to merge with Banca Cívica , valuing Civica at €977 million. The merger was completed in the 3rd quarter of the year and created the largest bank in Spain. On 27 November 2012, CaixaBank announced its plan to buy nationalized bank Banco de Valencia after Spain's bank restructuring fund called FROB injects €4.5 billion into Banco de Valencia. The FROB also assumed losses of up to 72.5% for

2432-417: The foundation. The shares of Criteria Caixa include the ones owned in CaixaBank (as of 31 December 2018: 40.00%), as well as those held in several companies including Cellnex , Naturgy , Saba, Suez and Telefónica . As explained above, since September 2014, La Caixa Banking Foundation is responsible for managing the social work projects of the former savings bank. Until then, this work was carried out by

2496-642: The growth and development of savings banks in Spain. In particular, freedom (i.e., lack of detailed regulation) regarding investment policies created diversification and growth of assets at a greater rate than counterparts elsewhere in Europe . From the time the Act of 1880 was published until the end of the 19th century, the number of entities doubled from 26 in 1880 to 66 in 1905, while the sum of cash and assets held as deposit increased by four percent from 12 per cent of total savings in Spain in 1880 to 16 percent in 1905. Alongside

2560-581: The integration in its offices and communications in the offices, combining them with that of the Catalan bank, but only in the territories of influence of each entity. On 12 June 2013 the General Shareholders' Meeting of Banco de Valencia approved its integration into CaixaBank . It was agreed to maintain the Banco de Valencia brand in the offices held by the bank in the provinces of Valencia and Castellón with

2624-465: The interventionist French model. As was the case in Britain , this approach limited the operations of savings banks. Legislation introduced in 1880, opened the way for the growth of Spanish savings banks. The Act of 1880 had clear objectives for the running of savings banks. At the same time, a number of its areas lacked precision in the newly introduced regulation. However, this lack of precision facilitated

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2688-430: The late 1980s, the Caja de Pensiones , by then known commonly known as "La Caixa", began work to expand outside of its usual territory: In 1986 it formed GrupCaixa to get around then-restrictive geographic limitations in the law; GrupCaixa was folded back into La Caixa in 1989 when the limitations were removed. By the time of the 1990 merger, La Caixa was already the largest savings bank in Spain. On 27 July 1990,

2752-407: The main source of funds (and therefore to support the "Obra Social"). Regulatory innovations put to an end the broad discretion that the directors of savings banks previously had and established specific and detailed guidelines whose use (and abuse) grew during the dictatorship of General Francisco Franco . The Franco regime (1939–1975) reaffirmed the pre-eminence of private commercial banks within

2816-730: The merger by absorption of Bankia by CaixaBank, Criteria Caixa (and, therefore, the "la Caixa" Foundation) came to own 30.012% of the entity. On the other hand, the Spanish State, through the FROB and its company BFA Tenedora de Acciones, became a shareholder in the entity with 16.117%. As of June 30, 2023, after a capital reduction, both the Government of Spain and the "la Caixa" Foundation increased their participation, remaining as follows: • "la Caixa" Foundation: 32.2%. • FROB: 17.3% • Floating capital: 50.3% • Treasury stock and Board of Directors: 0.1% Savings bank (Spain) In Spain ,

2880-547: The merger deed was registered in the Mercantile Registry of Valencia, the Bankia shares stopped trading and on March 29, the new CaixaBank shares -that the owners of the now defunct nationalized entity would receive- began to be quoted. Finally, after the operation, the "la Caixa" Foundation (through Criteria Caixa) began to have 30.012% of CaixaBank and the state-owned FROB (through BFA Tenedora de Acciones) 16.117%. Following

2944-633: The name " Caja de Pensiones para la Vejez y Ahorros ". The Obra Social was formally created in 1918 to oversee the Caja's social work. By 1930, the Caja had been reformed 15 times by mergers with other organizations; the first outside of Catalonia was the Caja Rural para la Federación Católico-Agraria de Ibiza in 1930. In 1969, the Caja de Pensiones became the first in Europe to begin real-time computerized tele-processing of transactions, allowing customers to do banking at any branch at will. In

3008-506: The name of “Banco de Murcia", next to the star denoting La Caixa. On 10 April 2014 it was announced that its transformation into a banking foundation would be decided at the ordinary general meeting on May 22 to comply with the Savings Banks and Banking Foundations Law, which requires savings banks with indirect banking activity to be liquidated and transformed into foundations, responsible for managing social work projects. This would lead to

3072-404: The number of Spanish savings banks tripled to 150 banks, although no major change in regulation policy or the banks' business portfolio had taken place. Between 1900 and 1914 the Spanish banking sector experienced a sharp increase in its levels of activity. Some banks also observed increased efficiency and enhanced competitiveness. Assets of private commercial banks grew significantly due to both

3136-454: The public. Initially they issued short-term loans using public and industrial goods in stock as collateral. Between 1862 and 1867, 40 per cent of the amount of the loans was granted against pawned items and the remaining 60 per cent was secured by stock. Diversification continued and by the outbreak of World War I , Spanish savings banks were readily issuing mortgages directly to retail customers. The Mortgage Act of 4 June 1908 contributed to

3200-491: The recently created Caja de Dépositos y Consignaciones . However, the change in strategy was short lived due to the poor quality of government bonds in the 19th century. Instead, Spanish savings banks increasingly used deposits exclusively to finance the activities of the ‘Mount of Piety’. A turning point in the history of Spanish savings banks came after the restoration of the monarchy in 1874. Until then regulation and government policy around savings banks had closely followed

3264-605: The repatriation of capital due to the colonial crisis and World War I , in which Spain remained neutral. These circumstances favoured geographical expansion throughout Spain of regional private commercial banks based in Madrid and the Basque Country . In 1921 the first banking law was enacted, and that year the Consejo Superior Bancario or CSB (High Banking Council) was established by private commercial banks. The role of

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3328-424: The rest were either taken over by other banks or by the government or forced to merge and taken over by the government, wiping out existing equity holders. However, the former cajas continue to exist, in the form of "banking foundations" or "ordinary foundations", that have seen their actions restricted to social and cultural incentives and sponsoring, and most of their financial means converted into shareholdings into

3392-699: The savings banks dates to the last stage of the Franco regime, when attempts were made to ease the regulatory burden on Spanish savings banks (particularly in 1962 and 1964). Nonetheless, until 1974 the savings banks remained outside the Spanish clearinghouse system and had access to only a restricted business portfolio. However, under the Fuentes Quintana Reform (1977) the competitive environments for savings and private banks started to converge. The reform gave savings banks strong incentives to modernise their infrastructure and develop new skills. In 1977, for example,

3456-481: The savings banks, in 1890 and following German ideas to promote agriculture, co-operative banks ( cajas rurales ) emerged in rural areas. Most of these banks were established in the countryside under the auspices of the syndicalist , co-operativist movements and the Catholic church . However, these intermediaries grew in size until after 1920. Their impact, number, and asset size were always dwarfed when compared with

3520-531: The subsequent "cajabancas" (or banks that have emerged from the former cajas). [REDACTED] Media related to Savings banks in Spain at Wikimedia Commons CaixaBank CaixaBank, S.A. ( Catalan pronunciation: [ˌkaʃəˈbaŋ] ), formerly Criteria CaixaCorp , is a Spanish multinational financial services company. CaixaBank is based in Valencia , with operative offices in Barcelona and Madrid . It

3584-462: The working environment of savings banks came about as a result of legislation enacted in 1926, 1929, and 1933 during the dictatorship of General Primo de Rivera , a period in which the economic policy was marked by an authoritarian corporatism , and the Spanish Republic brought. These regulatory changes brought to an end the savings banks' charitable nature. They also turned their profits into

3648-496: The ‘Mounts of Piety’ so they could make small loans to underprivileged classes. Like their counterparts in Scotland and France , Spanish savings banks briefly placed excess deposits at a government owned institution ( Caja General de Consignaciones , 1852–1868). This portfolio strategy was part of a change in government policy looking for greater intervention in the business of Spanish savings banks as well as providing financial aid to

3712-437: Was announced that CaixaBank and Bankia were studying their merger to create the largest bank in Spain. The Spanish State would go from owning 61.8% of Bankia to 14% of the merged entity, whose main shareholder would be the "la Caixa" Foundation, which would have around 30%. The resulting entity would have assets worth more than 650,000 million euros, some 6,600 branches and a workforce of more than 51,000 employees. On March 26,

3776-500: Was exposed in the aftermath of the 2007–2008 financial crisis . As a result, out of the 45 cajas in existence at the start of the crisis in 2007, only two have survived in their initial form. The rest were absorbed by banks, dismantling in effect the cajas model in Spain. Their trade association is the Spanish Confederation of Savings Banks (Confederación Española de Cajas de Ahorro or CECA). European countries that adopted

3840-506: Was finalised in Spring 2021 and created the third largest Spanish banking group The Fund for Orderly Bank Restructuring (FROB), a banking bailout and reconstruction program initiated by the Spanish government in June 2009, facilitated the merger between CaixaBank and Banco de Valencia on 27 November 2012. With competitors such as Banco Santander SA with 4,752 Spanish branches, CaixaBank announced it

3904-531: Was included in IBEX 35 . In addition, La Caixa acquired 14.91% of Bank of East Asia's capital. It has a portfolio of industrial holdings in companies in the infrastructure, energy and communications sectors, among others. On 27 January 2011, within the context of the restructuring of the financial system in Spain, the board of directors of La Caixa unveiled a complete reorganization of the group. The savings bank would transfer its banking business entirely (office network, client portfolio, assets, bank capital,...) to

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3968-502: Was the first to authorize the establishment of savings banks in Spain. This piece of legislation allowed the establishment of independent non-profit-orientated institutions, which had to be financed by their own resources. However, it was not clear how individual institutions would access these resources, though there were loose references to an expectation that capital would be raised as the well-off supplied financial resources as charitable donations. The Spanish government clearly displayed

4032-468: Was the largest-ever in Spain. The company was promoted to the IBEX 35 index in January 2008. A 2011 restructuring of the companies of the group saw Criteria renamed CaixaBank as La Caixa's banking and insurance activities were merged into it. At the same time most of the industrial stakes held by Criteria (including Grupo Port Aventura , Grupo Agbar , Gas Natural , and Abertis ) were transferred out of

4096-436: Was to encourage thrift among the very poor, but they evolved to compete with and rival commercial banks . Over time, most cajas colluded with regional political establishments to create a self-serving system of unscrupulous financing for regional governments provided by politically stuffed savings banks' boards which, in turn, thrived in what has been defined as "a culture of greed, cronyism and political meddling". This system

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