It has been eight months since Caja Laboral and Ipar Kutxa started talks about setting up a joint credit cooperative. On 20 March 2012, both entities officially announced the start of the formal negotiations of the entity. Since then, the representatives of both entities have worked in various areas with the aim of reaching agreements for the implementation of this new and pioneering Basque credit cooperative. It was announced on 1 November that it was a single legal entity. Starting on 1 January 2013, operational pooling will begin and end.

In this period we have seen multiple media advertising announcing a new banking model, a new way of working with customers, a desire to become active agents to promote economic recovery… Now is the time to put all that into practice. And the project leaders are in full activity. The new market brand will be a combination of the brands of Caja Laboral and Ipar Kutxa, which will capitalize on the value and positioning of both entities.

At this new stage, however, events have emerged which, unfortunately for the MCC group, its companies Fagor and Eroski and Caja Laboral, may prove harmful. The financial contributions of Eroski and Fagor, as well as the preferred shares of a number of financial institutions, have caused damage to many customers claiming the repayment of the money saved, after legislation not foreseen in 2004 has mortgaged their savings. This could weaken the image and credibility of the MCC Group, if the Mondragon Group does not resolve the issue transparently.

Second financial institution in the Basque Country

With the integration of Caja Laboral and Ipar Kutxa into a single credit cooperative, the resulting new entity will become the second financial institution in the Basque Country and the second credit cooperative in the Spanish State, strengthening its market position, especially in Bizkaia and Álava. In this way, the new cooperative will manage a total of assets above EUR 25 billion. In addition, in Hego Euskal Herria there are more than 860.000 clients (750,000 in the CAV and 110,000 in Navarra), and if we add to that the clients of Caja Laboral in other communities, the new entity will have more than 1,300,000 clients.

Both entities comprise 451 offices (364 Caja Laboral and 87 Ipar Kutxa), with a total of 2,497 employees (2,100 Caja Laboral and 397 Ipar Kutxa). Following the establishment of a single credit cooperative, several offices and jobs will be reduced, although there does not appear to be major changes in this area.

Unity, strength. The business plan for integration has been carried out with caution and forecasts have been drawn up on the basis of a negative banking context. The new cooperative will therefore fulfil all the solvency requirements. In fact, in this exercise, in addition to covering all the endowments and expanding the portfolio of companies and individuals, it
has achieved a prominent fund for coverage general.En the opinion of its managers, this alliance will improve its strategic position as a local entity and boost a financial entity based on the social economy, with the objective of providing financial services and assurance to the markets in which the organization integrates. The current model is the result of the transformation of the financial system into a bank, and the new entity also wants to offer an alternative to this model. In the words of those responsible, the proposed new model seeks to maintain closeness with clients, and its objective is to play a relevant role in the new financial situation, in order to promote economic and social development from a new perspective. In addition, the new cooperative project will continue to work with industry and the agri-food sector by leveraging the knowledge of the two supporting entities.

Its registered office in Arrasate

The new Basque credit cooperative will have its head office in Arrasate. To date, Ipar Kutxa was based in Plaza del Arenal in Bilbao, and will now host the operational sub-offices of the Commercial Network of the Retail Bank and its Business Committee, as well as the Territorial Directorate and the corresponding support structures. In addition, the headquarters of the Lagun Aro Insurance, the Holding Company and the Insurance Managers will be maintained in the Vizcaina capital.

The Governing Council shall consist of a total of 15 members: 12 Caja Laboral y 3 de Ipar Kutxa. The assemblies of the two merged entities have appointed Txomin García as president of the new entity, until now as general director of Caja Laboral.