The time has come to say goodbye to the model of savings banks that we have had in the last century, both in the South Basque Country and throughout the Spanish State. This is the result of the financial reform that the Spanish government has undertaken in recent weeks. On July 9, the Royal Decree-Law was approved to reform the Law of Governing Bodies of Savings Banks (AKOEL), as explained by the Spanish Government, which also establishes laws in the Basque territories, “to strengthen the Spanish financial system”. This reform has paved the way for the complete privatization and banking of savings banks. As a result, the social action that the Coffers have carried out in their centuries-old history is also jeopardized. This is what trade unions and consumer associations have denounced, arguing that the reforms mainly benefit banks and speculative interests.

The situation of some savings banks is serious because they are contaminated by political plots in their territories and have devoted much of their activity to the brick business. This has mainly led to a financial revolution. All this has led to the practical failure of many boxes. Not the Basque savings banks, which in general have managed well professionally, until one of them, BBK, rescues the Andalusian entity Cajasur. Remember that the solvency studies for banks and savings banks in Europe have been passed with good marks by the three savings banks in the Basque Country. However, the other Basque box, the Caja de Navarra, did not pass the exam, but has already taken measures to strengthen it. And yet, the reform is for all the boxes.

Four models, or four custom-made garments

The reform will allow the Fund to issue participation quotas in the form of shares, both with and without political rights. In both cases, the fees may not exceed 50 per cent of the Fund ' s assets. This will make it easier for savings banks to obtain private capital. The shares will be quoted on the Stock Exchange and paid for through dividends, as well as shares. The issuance limit shall be 50 per cent of the assets of each Fund.

The reform establishes four models for the boxes; four tailor-made garments. According to the first model, they will be able to continue being the Fund, with the approval of the new quota regime and the adaptation of the statutes to the rules of corporate governance. The second model will allow them to enter into an Institutional Protection System (BSI), that is, they can choose the so-called “cold merger”. The boxes that accept the “cold merger” will have a bank as a central entity, and the boxes will have at least 50% of the participation of this bank. If they sell more than 50% on the stock exchange, the boxes will cease to exist and they will have to become a foundation.

In the third model, they will be able to remain the cash, leaving all the financial business in the hands of a bank, but maintaining 50% of the shares of the exigent. Social action and industrial business will remain in the box. As for the fourth model, the boxes will have the opportunity to stop being boxes and become foundations, leaving the business in the hands of a bank, as long as they have less than 50% of the participation of that bank.

A voluntary reform?

According to the Spanish government, the financial reform that has been undertaken is voluntary. According to Elena Salgado, Vice President of Economy of the Spanish government, any decision on the change of model will have to be approved by two-thirds of the council and the general assemblies. In theory, reform is voluntary, but experience suggests that voluntary reform in theory eventually becomes mandatory. This is what the director of Bancaza, Luis Olivas, recently recalled. Olivas mentioned the virtues of the Italian model of changing boxes. In Italy, at first, the sale of part of the business to banks was voluntary and eventually became mandatory. Currently there are no savings banks in this country.

Depoliticization of the sector

The reform of the Fund also entails the professionalization and depoliticization of the management of the sector. The reform sets a three-year deadline for elected officials – state and autonomous parliamentarians, councillors, senior management positions, etc., with the exception of union representatives – to leave the cash management bodies. However, the alternates will be appointed by the autonomous parliaments and not by the government.