Search

The Covid-related crisis has once again highlighted the relevance of the financial system. The last financial crisis had an intense impact on the banking system, causing a sharp decline in lending activity, which, in many cases, has resulted in an increasing risk of financial exclusion especially in those territories in demographic decline. In this context, credit unions, characterized by their small size, localism and vocation of proximity banking, have suffered a less marked deterioration in assets than the rest of the entities of the banking system. In addition, they operate in areas where the population density is lower, differentiating their activity from the business of lucrative banking contributing to alleviate the financial exclusion of a geographical nature in these spaces. In an attempt to vindicate the role of credit unions, in the development of the territories of depopulation Spain, the present work is proposed. The aim of this is, on the one hand, to analyze the relationship between the financial system, employment and population, and on the other, to check if the presence of credit unions is greater where both factors are weaker, providing service in the spaces not attended by financial intermediaries. To this end, an empirical study is presented based on a model of structural equations using a partial least squares technique for demographic and financial activity data in 2018, the province is used as a unit of analysis. [ABSTRACT FROM AUTHOR]

The digital transformation is posing an unprecedented challenge for the financial sector. The classic model of financial intermediation is threatened. This is both a consequence of the development and the application of new technologies that are transforming society and that are empowering individuals with new digital tools. Nowadays, banks are not only competing with each other. New actors have also emerged in the financial landscape, such as fintech (financial companies whose business model is technology-intensive) and techfin (technology companies offering financial services, especially large technology companies -or bigtech-). The extensive branch networks that are typical for traditional retail banking, such as in cooperative banks, are reducing their prominence in the face of the growing offer and digitized management of financial products and services. The credit cooperatives have traditionally been characterized by a special link with their base of members and customers based on physical proximity. This has allowed the acquisition of great knowledge of the economic activity within the territory where the cooperative banks are established. Digital transformation and non-face-to-face financial services can significantly affect this traditional relational model based on personal contact with the users. Consequently, faced with this paradigm shift and taking into account the particularities that define the cooperative banking model, there is an interest to analyse the perception of this sector on this important and accelerated technological change, both from the perspective of internal processes, as from the external perspective of its clients. At the same time, it is appropriate to inquire about whether this process is being perceived differently depending on the size of the cooperative bank, given the fact that the traditional model of cooperative banking has been based on a wide network of offices. This research would be, as far as it is known, the first to address such a task in the field of credit cooperatives, since the scarce studies found have a more general character about the banking sector as a whole. In order to comply with the proposed objectives, information has been obtained through a questionnaire, consisting of 20 questions of a quantitative and qualitative nature. The questionnaire has been answered by a large number of Spanish credit cooperatives (41 out of 62 existing cooperative banks). With the obtained answers, a statistical-descriptive analysis has been completed, through the application of common statistics, such as: arithmetic mean, standard deviation, percentiles, maxi- mum and minimum. In turn, in line with the objectives set, statistics are presented including calculations for both, the sample set and for two sub-samples, in order to distinguish between entities of different dimensions. Once the analysis has been concluded, some remarkable results have been obtained. On the one hand, the cooperative banks that have been included in this study have indicated the necessity to improve their digital transformation. It can also be observed that the digital gap is perceived in relation to the rest of the banking sector. Managers are aware of the significant impact of the digital transformation of the economy and society. Technology-based tools, such as big data, may have the greatest impact on the commercial banking activity. Within the next five years an intense competition from technology- based companies is expected. Furthermore, the technological culture of members and customers is insufficient. On the other hand, it can also be observed that the dimension of the cooperative banks influences their perception of the digital transformation in the cooperative banking sector. In this sense, the cooperative banks that affirmed the existence of a wide margin of improvement in the operational scope have a smaller dimension and more seniority than the rest of the sample. Banks that have a higher number of total assets and a higher number of employees also perceive a greater margin of improvement when it comes to the internal management processes. Additionally, the results indicate that the perceptions of digital transformation are conditioned by the size of the entity. Larger entities perceive a lower degree of assimilation of the digital transformation by the organization's employees, giving it greater importance to the impact of different technologies. Large entities perceive less intensity of competition from foreign banks and value the degree of technological and financial culture of members and customers more. However, these results have limitations that have conditioned this research. These are basically founded on the fact that the analysis is based on the perceptions of the managers of the surveyed entities. This implies a degree of subjectivity conditioned by multiple non-controllable variables. With this general approach to different aspects related to digital transformation it has not been possible to contemplate other transcendental issues. The study culminates with a series of strategic suggestions that can be considered by the sector. Credit cooperatives, usually with a smaller comparative dimension with respect to the large commercial banks and based on federative models, cooperation or systems of cooperative concentration give special value to territorial self-identification and proximity to the members. Technology can be a factor of distancing that can lead to a loss of personal contact with members or clients. Therefore, the cooperative bank must design compatibility strategies between the philosophy of its specific business model and the assimilation of digital transformation. Precisely, its closeness to the client can be the way to acquire a prominent role in the financial-digital education process that society will demand over the next few years. Additionally, based on the results obtained, it can be said that, from a strategic approach, credit cooperatives must value or advance in various lines of digital transformation of their activity, both in their internal and organizational processes and in their relations with clients. In the latter case, the reduction of processing times for operations, the use of apps (mobile applications) and access systems that are increasingly simple, agile and attractive, can be essential. Special attention should be given to anything that implies a more satisfied customer experience and simplification of procedures, with a wider and more personalized portfolio of financial products and services. In this sense, the strategy should begin with evaluating the implementation of new technologies that already anticipate major changes. This is the case of blockchain in its internal processes or the use of vast amounts of data that is collected from the daily relationship with customers, with the aim of improving the personalization of the offer. [ABSTRACT FROM AUTHOR]

The current financial crisis has caused a major restructuring of the Spanish banking system, forcing banks to adapt quickly to the new regulatory and economic environment. In this context, credit unions have shown differentiating behaviour, not only compared to other banks but also between members of the same cooperative sector. The aim of this paper is to present empirical evidence for the differential response of Spanish credit unions during the restructuring process carried out since 2008, in terms of credit supply, profitability, solvency and efficiency; showing, in turn, that the observed asymmetries between cooperative banking institutions are explained primarily by their size and degree of capitalisation. [ABSTRACT FROM AUTHOR]

Given their nature, cooperatives are highly likely to publish CSR reports. However, compared to commercial companies, few contributions to the subject are to be found in the literature, particularly with regard to the auditing of such reports. This study aims to contribute new knowledge on the state of the question by exploring the practices adopted by Spanish credit unions in relation to publishing and auditing CSR reports. The results show that neither the preparation of standardised CSR reports nor their auditing are very widespread. Also, when credit unions do provide CSR information they mainly publish data on social issues. [ABSTRACT FROM AUTHOR]

The aim of the present work is to evaluate the corporate social performance of savings banks and cooperative banks from Aragon by analysing the information disclosed by these firms. We have developed a model to measure the corporate social performance reported by these banks, based on their interaction with their stakeholders. Moreover, the quantitative analysis is complemented by interviews. The main results show that the information on these issues disclosed in 2004-2008 is limited and mainly focuses on corporate governance and community concerns. However, we have observed a positive trend in the social performance information disclosed. The number of organisations that publish a sustainability report has grown from one in 2004 to three in 2008. This could indicate that savings banks and cooperative banks in Aragón are showing increasing interest in corporate responsibility principles and transparency. [ABSTRACT FROM AUTHOR]

One of the main consequences of the economic and financial crisis that began in the summer of 2007 has been an acceleration of the restructuring processes in the Spanish banking system, which includes credit cooperatives. In view of this, the aim of this research is to analyse the decade before the concentration processes in this sector began, in order to study whether the rationale for the groups that have been set up was based on criteria of homogeneous performance (degree of efficiency) of the constituent entities. To this end, it examines the groups that existed beforehand. In other words, this article tries to study whether the groups that have been formed or projected have followed the recommendations of the Spanish Central Bank or, on the contrary, whether the choice between the different alternatives or processes has been made for different reasons. [ABSTRACT FROM AUTHOR]

The important changes taking place in the regulation and supervision of the global financial system have given rise to an important set of measures aimed at increasing its robustness in the medium and long term. Among these, the reform of the deposit guarantee system as a key element of safety nets and, therefore, of global financial stability. The aim of this article is to contribute to the ongoing debate on the reform of international financing of deposit insurance systems, arising from the latest global crisis, and to provide empirical evidence on the quantitative impact that the application of risk-based models of contribution to the Deposit Guarantee Fund would have on Spanish credit unions. [ABSTRACT FROM AUTHOR]

Over the past three years, major reforms have been approved in Spain in order to restructure the banking sector. The purpose of these reforms has been to reinforce the solvency of credit institutions through recapitalization and integration into larger organizations. The credit cooperatives have not presented any solvency problems which would justify these measures being applied to them. The problem that the financial authorities see in their case is their limited size. As a result, the credit cooperatives are immersed in an integration process which is not revolving around the Banco Cooperativo Español (BCE) or the Spanish Association of Rural Savings Banks, as might be expected, but is taking place through mergers between individual institutions and the setting up of various cooperative groups. While the credit cooperatives have not been channelled into bankization (conversion into banks) like the savings banks, ways to become banks have been opened up to them. [ABSTRACT FROM AUTHOR]

In the current context of economic crisis and financial sector restructuring, credit unions must increase their efficiency, reinforce their solvency and compete in the banking business without losing their own identity. Due to the cooperative principles they are based on, shifting towards an ethical banking model could be almost natural for them, unveiling new opportunities for growth and strengthening their contribution to the sustainable development of the communities in which they operate. The aim of this paper is to identify the possible opportunities for credit unions that a shift towards Ethical Banking could bring. [ABSTRACT FROM AUTHOR]

The aim of this paper is to study the level of efficiency in the sector of cooperative savings banks in Spain, using a non-parametrical approach by means of the DEA analysis. (DEA - Data Envelopment Analysis). Due to this, we start by a restricted approach that includes inputs such as business banking, staff costs, depreciation and financial costs, the traditional outputs being, loans and the securities portfolio. Subsequently, an incremental approach is proposed, extending the outputs of cooperative savings banks to bank operations, preferably with partners and the requirement to have a large workforce, with a reduced net profit in comparison with the rest of the banking entities. After discriminating the size of the cooperative savings banks, the future strategic response of the most important savings banks is given, according to the volume of Average Total Assets. [ABSTRACT FROM AUTHOR]

The aim of this paper is to show the situation of the main European co-operative banking groups (or systems) through the analysis of particular aspects of their structure and the activities and services they offer, in order to compare these groups with the Spanish case to check if the different ways of dealing with these aspects agree, and under what circumstances or how they are developed. This analysis is also intended to identify the decision-making and economic linking relations set up between credit co-operatives and the centralised services structures which work within the co-operative banking groups. [ABSTRACT FROM AUTHOR]