Sparebank
Encyclopedia
Sparebank is a Norwegian savings bank
without external owners. The Norwegian sparebanks are a separate type of juridical entity that differ from commercial banks. There are a total of 123 savings banks in Norway.
Historically the savings banks concentrated on private customers, combined with small businesses and the primary sector. Loan
s were financed through deposits
. Today the difference between savings banks and commercial banks are smaller, partially because savings banks now can issue stock
-like grunnfondsbevis where the owners are both given dividend
and representation in the governing bodies of the banks. The savings banks can now also convert themselves to public limited companies
, but so far only one bank, Gjensidige NOR
, had done so. Part of this later merged to form DnB NOR
while the rest of it returned to the savings bank form, becoming Gjensidige
.
Traditionally the savings banks have had a strong local foundation, and a goal for the municipalities were often to have their own savings bank. After World War II
there were about 600 savings banks in Norway. Partially because of municipal mergers, but primarily because banking after a while demanded broader and deeper competence and because the savings banks need to be bigger to capture larger customers, there was from the 1960s and about 25 years onwards a number of mergers among savings banks. Today there are 123 savings banks, of which some are large, regional savings banks. Parallel there has been a cooperation in Information Technology
and product development, and a lot of the savings banks have joined one of two alliances: Sparebank 1
and Terra-Gruppen
. Since most of the small commercial banks have been merged or bought by the large Nordic finance groups (DnB NOR, Nordea
, Danske Bank
etc., the savings banks remain as the last bit of decentralised banking in Norway. All savings banks are organised in the Norwegian Savings Banks Association
.
Sparebank is a sponsor of Rosenborg BK.
Savings bank
A savings bank is a financial institution whose primary purpose is accepting savings deposits. It may also perform some other functions.In Europe, savings banks originated in the 19th or sometimes even the 18th century. Their original objective was to provide easily accessible savings products to...
without external owners. The Norwegian sparebanks are a separate type of juridical entity that differ from commercial banks. There are a total of 123 savings banks in Norway.
History
The first savings bank was created in 1822, and in the following 75 years savings banks were set up in most municipalities of Norway. The banks had both a savings upbringing function for the commoners (so they didn't have to burden society when they got sick and old) and served an important part in local communities development and self-financing.Historically the savings banks concentrated on private customers, combined with small businesses and the primary sector. Loan
Loan
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower....
s were financed through deposits
Deposit account
A deposit account is a current account, savings account, or other type of bank account, at a banking institution that allows money to be deposited and withdrawn by the account holder. These transactions are recorded on the bank's books, and the resulting balance is recorded as a liability for the...
. Today the difference between savings banks and commercial banks are smaller, partially because savings banks now can issue stock
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
-like grunnfondsbevis where the owners are both given dividend
Dividend
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business , or it can be distributed to...
and representation in the governing bodies of the banks. The savings banks can now also convert themselves to public limited companies
Allmennaksjeselskap
Allmennaksjeselskap , or ASA, is the Norwegian term for a public limited company. "ASA" or "asa" is added to the company name of all Norwegian companies registered as Allmennaksjeselskap....
, but so far only one bank, Gjensidige NOR
Gjensidige NOR
Gjensidige NOR was a Norwegian bank and insurance company that was in existence between 1999 and 2003. The company was created when the two savings banks Sparebanken NOR and Gjensidige were merged in 1999. In 2002 Norwegian savings banks were allowed to become public limited company and was...
, had done so. Part of this later merged to form DnB NOR
DnB NOR
DNB ASA is Norway's largest financial services group with total combined assets of more than NOK 2.0 trillion and a market capitalisation NOK 102 billion as per December the 31st. The Group includes brands such as DNB, Vital, Nordlandsbanken, Cresco, Postbanken, DnB NORD and Carlson...
while the rest of it returned to the savings bank form, becoming Gjensidige
Gjensidige
Gjensidige Forsikring ASA is a Norwegian insurance company. Though the company has roots back to 1689 when the fire treasury at Nes was founded, Gjensidige in its present form was founded in 2003 when the insurance division of Gjensidige NOR was not made part of its merger with Den norske Bank...
.
Traditionally the savings banks have had a strong local foundation, and a goal for the municipalities were often to have their own savings bank. After World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
there were about 600 savings banks in Norway. Partially because of municipal mergers, but primarily because banking after a while demanded broader and deeper competence and because the savings banks need to be bigger to capture larger customers, there was from the 1960s and about 25 years onwards a number of mergers among savings banks. Today there are 123 savings banks, of which some are large, regional savings banks. Parallel there has been a cooperation in Information Technology
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
and product development, and a lot of the savings banks have joined one of two alliances: Sparebank 1
Sparebank 1
SpareBank 1 is a Norwegian alliance and brand name for savings bank. The alliance is organised through the company SpareBank 1 Gruppen AS that is owned by the participating banks. In total the alliance is Norway's second largest bank with total assets of NOK 625 billion, 352 branches and 6300...
and Terra-Gruppen
Terra-Gruppen
Terra-Gruppen, branded as Terra is an alliance between 77 Norwegian savings banks. Terra-Gruppen is a strategic alliance of local Norwegian savings banks, and co-ordinates work within the areas defined as falling within the alliance. The group supplies competitive products and services to banks and...
. Since most of the small commercial banks have been merged or bought by the large Nordic finance groups (DnB NOR, Nordea
Nordea
Nordea Bank AB is a Stockholm-based financial services group operating in Northern Europe. The bank is the result of the successive mergers and acquisitions of the Swedish, Finnish, Danish and Norwegian banks of Nordbanken, Merita Bank, Unibank and Kreditkassen that took place between 1997 and 2000...
, Danske Bank
Danske Bank
Danske Bank is a Danish bank. The name literally means "Danish Bank" It was founded 5 October 1871 as Den Danske Landmandsbank, Hypothek- og Vexelbank i Kjøbenhavn ....
etc., the savings banks remain as the last bit of decentralised banking in Norway. All savings banks are organised in the Norwegian Savings Banks Association
Norwegian Savings Banks Association
The Norwegian Savings Banks Association is the trade organization for savings banks in Norway.It was founded in 1914 as Centralforeningen for Norges Sparebanker. Director since 2002 is Arne Hyttnes...
.
Sparebank is a sponsor of Rosenborg BK.
See also
- Mutual savings bankMutual savings bankA mutual savings bank is a financial institution chartered by a central or regional government, without capital stock, that is owned by its members who subscribe to a common fund. From this fund claims, loans, etc., are paid. Profits after deductions are shared between the members...
- Cooperative bank
- Banking in Norway