Credico-op Bank
Encyclopedia
Banco Credicoop is the largest cooperatively-owned bank in Argentina
.
s. This was motivated largely by the adverse effect Economy Minister José Alfredo Martínez de Hoz
's Financial Entities Law of 1977 had on this sector. The policy encouraged commercial banks in Argentina to offer high-yield, exotic investments by extending the Central Bank's guarantee to losses accrued from these financial vehicles. This practice collapsed between 1980 and 1982, however, and hundreds of unregulated, non-banking financial institutions, as well as numerous banks, closed. Today, Banco Credicoop is Argentina's eleventh-largest bank by total assets and ninth-largest by deposits (US$2.8 billion); Nearly all of this is accounted for by its over 670,000 members, and Credicoop maintains 244 branches.
The institution is organized as a credit union
, and operates as a non-profit cooperative
. Each member is given one vote at all shareholder meetings, and the top ten depositors account for less than 10% of deposits. It is also a lender in a country where domestic credit is difficult to access, holding a net loan portfolio of nearly US$1.7 billion (3.5% of the domestic total). Loans to small and medium businesses accounted for 70% of this, and the credit union holds 5% of the nation's domestic loans to this sector. The credit union provides personal and business financial and accounting services; since 1980, it has issued Cabal, the only cooperatively-managed credit card
in Argentina. The group also manages the Previsol Pension Fund and numerous insurers. Credicoop is a standing member of the International Co-operative Alliance
.
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
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Overview
Banco Credicoop was established in 1979 through the merger of 44 Argentine credit unionCredit union
A credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members...
s. This was motivated largely by the adverse effect Economy Minister José Alfredo Martínez de Hoz
José Alfredo Martínez de Hoz
José Alfredo Martínez de Hoz was an Argentine executive and policy maker. He served as Minister of the Economy under de facto President Jorge Rafael Videla between 1976 and 1981, and shaped economic policy during the self-styled National Reorganization Process military dictatorship.-Early...
's Financial Entities Law of 1977 had on this sector. The policy encouraged commercial banks in Argentina to offer high-yield, exotic investments by extending the Central Bank's guarantee to losses accrued from these financial vehicles. This practice collapsed between 1980 and 1982, however, and hundreds of unregulated, non-banking financial institutions, as well as numerous banks, closed. Today, Banco Credicoop is Argentina's eleventh-largest bank by total assets and ninth-largest by deposits (US$2.8 billion); Nearly all of this is accounted for by its over 670,000 members, and Credicoop maintains 244 branches.
The institution is organized as a credit union
Credit union
A credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members...
, and operates as a non-profit cooperative
Cooperative
A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit...
. Each member is given one vote at all shareholder meetings, and the top ten depositors account for less than 10% of deposits. It is also a lender in a country where domestic credit is difficult to access, holding a net loan portfolio of nearly US$1.7 billion (3.5% of the domestic total). Loans to small and medium businesses accounted for 70% of this, and the credit union holds 5% of the nation's domestic loans to this sector. The credit union provides personal and business financial and accounting services; since 1980, it has issued Cabal, the only cooperatively-managed credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
in Argentina. The group also manages the Previsol Pension Fund and numerous insurers. Credicoop is a standing member of the International Co-operative Alliance
International Co-operative Alliance
The International Co-operative Alliance is a non-governmental co-operative federation or, more precisely, a co-operative union representing co-operatives and the co-operative movement worldwide. It was founded in 1895. The ICA maintains the internationally recognised definition of a co-operative...
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