Bank of the City of Buenos Aires
Encyclopedia
The Bank of the City of Buenos Aires (Banco Ciudad de Buenos Aires) is a publicly-owned, municipal commercial bank
in Buenos Aires, Argentina.
in Buenos Aires
(mostly targeting the growing wave of immigration in Argentina). The board of directors' first meeting on July 10 outlined the goal of "serving the working community, which is in the greatest need of such an institution." Opening its doors in a Montserrat
ward residence formerly belonging to Viceroy Joaquín del Pino
(1801–04), the bank grew quickly; in 1888, it was nationalized
and transferred to the City of Buenos Aires.
Its new headquarters in the financial district
was accompanied by new capitalization
, allowing it provide personal, business and mortgage loans and payday advances. It soon began to administer pension fund
s and became a leading local source for underwriting
of initial public offering
activity on the Buenos Aires Stock Exchange
, government bond
s, and foreign trade, as well. The institution was rechartered officially as the Municipal Savings and Loan Bank in 1904.
Following initially disappointing results, increased investment in bank branches, agencies and other forms of representation led to the institution's renewed growth, particularly during the tenure of bank president Enrique Peña, who in 1916 committed the institution to "combat usury in the most effective possible way - making branches readily available throughout the city so as to lessen inconvenience to those who need our services."
A nationalist coup d'état
in 1943 led to the sudden advent of Col. Juan Perón
as the new regime's chief policy-maker. The new government quickly made the control of price gouging
in banking and public services a policy centerpiece, and in 1944, the savings & loan was again re-chartered as the Municipal Bank of Buenos Aires to give depositors more commercial bank
ing options in Argentina's growing public sector.
The bank became a leader in small business lending, and financed public housing
projects in underprivileged areas. The city purchased a downtown lot on the massive Nueve de Julio Avenue (where the Mercado del Plata wholesaler stood until the avenue's 1937 opening) for the 1962 construction of a new, flagship branch and offices. Its headquarters were relocated to a refurbished Florida Street
building, the former A la Ciudad de México department store, in 1968. These and other new offices allowed the bank to expand its larger-scale commercial lending activities. Its growing competition with the Bank of the Province of Buenos Aires
led to the adoption of its current name in 1972.
The Bank of the City of Buenos Aires is the eighth-largest in Argentina by deposits, which in February 2010 totaled US$3.1 billion (4% of the domestic total), and its loan portfolio of US$2.1 billion made it the nation's seventh-largest lender; it maintained 61 branches, employing over 3,000 people.
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
in Buenos Aires, Argentina.
Overview
The bank was chartered on May 23, 1878, as the Monte de Piedad (Piety Mount) in a measure against the prevalence of usuryUsury
Usury Originally, when the charging of interest was still banned by Christian churches, usury simply meant the charging of interest at any rate . In countries where the charging of interest became acceptable, the term came to be used for interest above the rate allowed by law...
in Buenos Aires
Buenos Aires
Buenos Aires is the capital and largest city of Argentina, and the second-largest metropolitan area in South America, after São Paulo. It is located on the western shore of the estuary of the Río de la Plata, on the southeastern coast of the South American continent...
(mostly targeting the growing wave of immigration in Argentina). The board of directors' first meeting on July 10 outlined the goal of "serving the working community, which is in the greatest need of such an institution." Opening its doors in a Montserrat
Montserrat, Buenos Aires
Monserrat is a neighbourhood located in the east of the Buenos Aires CBD. The district features some of the most important public buildings in Buenos Aires, including city hall, the city legislature, Casa Rosada, the Colegio Nacional de Buenos Aires and the Libertador Building , among...
ward residence formerly belonging to Viceroy Joaquín del Pino
Joaquín del Pino
Joaquín del Pino Sánchez de Rojas Romero y Negrete , was a Spanish military engineer and politician, who held various positions in the South American colonial administration.-Early life:...
(1801–04), the bank grew quickly; in 1888, it was nationalized
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...
and transferred to the City of Buenos Aires.
Its new headquarters in the financial district
San Nicolás, Buenos Aires
San Nicolás is one of the neighbourhoods of the city of Buenos Aires, Argentina, sharing most of the city and national government structure with neighboring Montserrat and home to much of Buenos Aires' financial sector...
was accompanied by new capitalization
Capitalization
Capitalization is writing a word with its first letter as a majuscule and the remaining letters in minuscules . This of course only applies to those writing systems which have a case distinction...
, allowing it provide personal, business and mortgage loans and payday advances. It soon began to administer pension fund
Pension fund
A pension fund is any plan, fund, or scheme which provides retirement income.Pension funds are important shareholders of listed and private companies. They are especially important to the stock market where large institutional investors dominate. The largest 300 pension funds collectively hold...
s and became a leading local source for underwriting
Underwriting
Underwriting refers to the process that a large financial service provider uses to assess the eligibility of a customer to receive their products . The name derives from the Lloyd's of London insurance market...
of initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
activity on the Buenos Aires Stock Exchange
Buenos Aires Stock Exchange
The Buenos Aires Stock Exchange is the organization responsible for the operation of Argentina's primary stock exchange located at Buenos Aires CBD. Founded in 1854, is the successor of the Banco Mercantil, created in 1822 by Bernardino Rivadavia.Citing BCBA's self definition: "It is a...
, government bond
Government bond
A government bond is a bond issued by a national government denominated in the country's own currency. Bonds are debt investments whereby an investor loans a certain amount of money, for a certain amount of time, with a certain interest rate, to a company or country...
s, and foreign trade, as well. The institution was rechartered officially as the Municipal Savings and Loan Bank in 1904.
Following initially disappointing results, increased investment in bank branches, agencies and other forms of representation led to the institution's renewed growth, particularly during the tenure of bank president Enrique Peña, who in 1916 committed the institution to "combat usury in the most effective possible way - making branches readily available throughout the city so as to lessen inconvenience to those who need our services."
A nationalist coup d'état
Coup d'état
A coup d'état state, literally: strike/blow of state)—also known as a coup, putsch, and overthrow—is the sudden, extrajudicial deposition of a government, usually by a small group of the existing state establishment—typically the military—to replace the deposed government with another body; either...
in 1943 led to the sudden advent of Col. Juan Perón
Juan Perón
Juan Domingo Perón was an Argentine military officer, and politician. Perón was three times elected as President of Argentina though he only managed to serve one full term, after serving in several government positions, including the Secretary of Labor and the Vice Presidency...
as the new regime's chief policy-maker. The new government quickly made the control of price gouging
Price gouging
Price gouging is a pejorative term referring to a situation in which a seller prices goods or commodities much higher than is considered reasonable or fair. In precise, legal usage, it is the name of a crime that applies in some of the United States during civil emergencies...
in banking and public services a policy centerpiece, and in 1944, the savings & loan was again re-chartered as the Municipal Bank of Buenos Aires to give depositors more commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
ing options in Argentina's growing public sector.
The bank became a leader in small business lending, and financed public housing
Public housing
Public housing is a form of housing tenure in which the property is owned by a government authority, which may be central or local. Social housing is an umbrella term referring to rental housing which may be owned and managed by the state, by non-profit organizations, or by a combination of the...
projects in underprivileged areas. The city purchased a downtown lot on the massive Nueve de Julio Avenue (where the Mercado del Plata wholesaler stood until the avenue's 1937 opening) for the 1962 construction of a new, flagship branch and offices. Its headquarters were relocated to a refurbished Florida Street
Florida Street
Florida Street is an elegant shopping street in Downtown Buenos Aires, Argentina. A pedestrian street since 1971, some stretches have been pedestrianized since 1913....
building, the former A la Ciudad de México department store, in 1968. These and other new offices allowed the bank to expand its larger-scale commercial lending activities. Its growing competition with the Bank of the Province of Buenos Aires
Bank of the Province of Buenos Aires
The Bank of the Province of Buenos Aires is a publicly-owned Argentine bank and the second-largest in the nation, by value of assets and deposits.-History:...
led to the adoption of its current name in 1972.
The Bank of the City of Buenos Aires is the eighth-largest in Argentina by deposits, which in February 2010 totaled US$3.1 billion (4% of the domestic total), and its loan portfolio of US$2.1 billion made it the nation's seventh-largest lender; it maintained 61 branches, employing over 3,000 people.