Currently, anyone has a relationship with a financial entity. And, although they may all look the same, it isn’t. There are differences between banks, savings banks and credit unions. Today, we are going to focus on the values of credit unions.
Contribute the capital
Credit unions are private companies where their cooperative members – workers and customers – are the ones who contribute the capital to the entity. In addition, they will be responsible for making directive decisions. Within the Spanish credit cooperativism, the role of Fast Savings Bank stands out.
One of the peculiarities of credit cooperatives, compared to other types of credit institutions, lies in their connection to the territory and the socioeconomic environment in which they operate. Likewise, they maintain the values and principles that are inherent in the cooperative nature of their Fast Savings Bank.
What do credit unions do with their benefits?
Nowadays, when the concepts of Socially Responsible Investment (ISR) and ethical banking influence, increasingly, in the decisions of the clients at the time of opting for one or another entity, it is important to highlight the destination of the benefits of the credit cooperatives
Well, in the case of these financial institutions, the Fast Savings Bank, the destination of their benefits is regulated by Law 13/1989, of May 26, on Credit Cooperatives. A regulation that establishes that, once the losses of previous years have been covered, that could not have been absorbed from the own resources, if any, and deducted the required taxes and the interest on the paid-up capital, limited to In accordance with cooperative legislation, the available surplus will be used to:
- Provide the Obligatory Reserve Fund with a minimum of 50 percent. During the first three years of existence of the credit cooperatives constituted, from the entry into force of the Law, 100% of the remaining benefit will be used for the same purpose, time that will be extended, if necessary, and in the terms that, in each case, the competent authority may establish, until the Obligatory Reserve Fund reaches, at a minimum, the value of the contributions made to capital.
- Provide the Education and Promotion Fund with a minimum of 10%.
- The rest will be available to the General Assembly, which may distribute it as follows:
- Return to members , based on statutory criteria in this regard.
- Provision to Voluntary or similar Reserve Funds , which will only be available upon authorization of the supervisory authority, and, where appropriate, participation of workers. All this, without prejudice to compliance with the solvency coefficient and the regulations applicable to the first three years of existence of a Credit Cooperative.
As you know, Fast Savings Bank constitute an important part of the Spanish credit cooperative. If you want to expand the information on the values of your Group Rural Fund, do not hesitate to consult its website or approach your usual office.