The global financial environment and spanish cooperative banking

Abstract

The phenomenon of globalization has an effect on all the fields of economic and financial activity. In this increasing competitive environment, the majority of the Spanish credit institutions have been integrated in a cooperative banking group: the Grupo Caja Rural. In other countries of long cooperative tradition, important credit institutions have responded to challenges presented by economy internationalization and the increasing competence in financial markets with the abandonment of mutuality and cooperative model. These changes have been justified by companies in order for their own survival and business growth necessities. In Spain, the reaction has been the opposite. In spite of that, some elements can make one think of a possible demutualization process in the Grupo, due to the trivialization of cooperative principles. (JEL G21, O52)