Spanish Confederation of Savings Banks

Spanish savings banks developed a vertical alliance structured through a "central" savings bank or wholesaler of retail finance. This kind of institution dated to the early 20th century and was pioneered by Skopbank in Finland (established in 1908), Fellesbanken in Norway and ICCRI in Italy (both established in 1919).

Central savings banks were membership owned and they had little influence on members’ strategic or operational matters. Their aim was to service the needs of participating institutions often in a representative capacity but also in areas where necessary economies of scale were beyond the individual member.

There are two precedents to the formation of the Confederation of Spanish Savings Banks (Confederación Española de Cajas de Ahorros or commonly known as CECA), namely regional associations and the Savings Banks Credit Institute

Between 1921 and 1939, most Spanish savings banks remained local institutions but the biggest savings banks started to expand within their province and across adjacent areas. In the course of the first quarter of the century competition had increased for the savings banks from two sources. First, government-owned banks were established. Secondly, private commercial banks developed national branch networks by capitalising on greater balance sheet strength.

The process of banking cartelisation took place in conjunction with the regulatory change and the conflicts generated by the governmental policies. The situation created after the first banking law of 1921 and the simultaneous creation of the banking cartel (Banking Control Council–Consejo Superior Bancario or CSB), generated a series of defence mechanisms put in place by the savings banks. The most important of these was the creation of regional federations of savings banks.

Bank federations in Spain emerged as a response to regulatory changes that modified the otherwise equal framework for business under which private commercial and savings banks could compete. Led by the Basque-Navarre federation in 1924, the Galician Federation, the Levante Federation, the Catalan-Aragonese-Balearic Federation, the Western Federation, the Castilian Federation, the Asturian Federation, and the Federation of Savings Banks in Andalusia. These were then to ammalgamate in 1928 and create the Confederation of Spanish Savings Banks (Confederación Española de Cajas de Ahorros, abbreviated as CECA).

...
Wikipedia