Banking in Cuba
Encyclopedia
This article discusses banking in Cuba and gives an overview of the recent past. For details on the Cuban economy in general, see economy of Cuba
.
of the 1950s, the Cuba
n banking sector came under the control of the new regime. The new authorities famously appointed Che Guevara
as President of the National Bank of Cuba in 1959. Guevara often retold the apocryphal story of how he gained the job at the bank; Fidel Castro
had asked if there were an economist
a in the room and he had put his hand up - much to Castro's surprise. Guevara had mistakenly thought that Castro had asked for a comunista..
Guevara's appointment seemed somewhat ironic, as he often condemned money
, favored its abolition, and showed his disdain by signing Cuban banknotes with his nickname, "Che."
The 1990s saw the restructuring of the Cuban banking system, with new commercial banks created, and a new central bank, "Banco Central de Cuba" set up. The architect of this restructuring, Francisco Soberón, became the first president of the new central bank.
( - "BCC") functions as the central bank
of Cuba. The Cuban government set it up in 1997 to take over many of the functions of the National Bank of Cuba. Since that time Francisco Soberón Valdés has served as the Bank's President until he stepped down in 2009. He was replaced by Ernesto Medina, who has served as president of the state-run Banco Financiero Internacional since 2003 The President of the Central Bank serves ex officio as a member of the Council of Ministers of Cuba
.
As with most Cuban government ministries, the Central Bank acts as both banking regulator and shareholder
of much of the Cuban banking system.
In addition, the Havana International Bank is registered in London.
Economy of Cuba
The economy of Cuba is a largely centrally planned economy dominated by state-run enterprises overseen by the Cuban government, though there remains significant foreign investment and private enterprise in Cuba...
.
History
Following the Cuban RevolutionCuban Revolution
The Cuban Revolution was an armed revolt by Fidel Castro's 26th of July Movement against the regime of Cuban dictator Fulgencio Batista between 1953 and 1959. Batista was finally ousted on 1 January 1959, and was replaced by a revolutionary government led by Castro...
of the 1950s, the Cuba
Cuba
The Republic of Cuba is an island nation in the Caribbean. The nation of Cuba consists of the main island of Cuba, the Isla de la Juventud, and several archipelagos. Havana is the largest city in Cuba and the country's capital. Santiago de Cuba is the second largest city...
n banking sector came under the control of the new regime. The new authorities famously appointed Che Guevara
Che Guevara
Ernesto "Che" Guevara , commonly known as el Che or simply Che, was an Argentine Marxist revolutionary, physician, author, intellectual, guerrilla leader, diplomat and military theorist...
as President of the National Bank of Cuba in 1959. Guevara often retold the apocryphal story of how he gained the job at the bank; Fidel Castro
Fidel Castro
Fidel Alejandro Castro Ruz is a Cuban revolutionary and politician, having held the position of Prime Minister of Cuba from 1959 to 1976, and then President from 1976 to 2008. He also served as the First Secretary of the Communist Party of Cuba from the party's foundation in 1961 until 2011...
had asked if there were an economist
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
a in the room and he had put his hand up - much to Castro's surprise. Guevara had mistakenly thought that Castro had asked for a comunista..
Guevara's appointment seemed somewhat ironic, as he often condemned money
Money
Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...
, favored its abolition, and showed his disdain by signing Cuban banknotes with his nickname, "Che."
The 1990s saw the restructuring of the Cuban banking system, with new commercial banks created, and a new central bank, "Banco Central de Cuba" set up. The architect of this restructuring, Francisco Soberón, became the first president of the new central bank.
Central Bank of Cuba
The Central Bank of CubaCentral Bank of Cuba
The Central Bank of Cuba is the central bank of Cuba. It was created in 1997, to take over many of the functions of the National Bank of Cuba...
( - "BCC") functions as the central bank
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
of Cuba. The Cuban government set it up in 1997 to take over many of the functions of the National Bank of Cuba. Since that time Francisco Soberón Valdés has served as the Bank's President until he stepped down in 2009. He was replaced by Ernesto Medina, who has served as president of the state-run Banco Financiero Internacional since 2003 The President of the Central Bank serves ex officio as a member of the Council of Ministers of Cuba
Council of Ministers of Cuba
The Cabinet of Cuba is the highest ranking executive and administrative body of the Republic of Cuba, and constitutes the nation's government...
.
As with most Cuban government ministries, the Central Bank acts as both banking regulator and shareholder
Shareholder
A shareholder or stockholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. Shareholders own the stock, but not the corporation itself ....
of much of the Cuban banking system.
Retail banks
- Banco de Crédito y Comercio (BANDEC)
- Banco Popular de Ahorro (BPA)
- Banco Financiero Internacional (BFI)
- Banco Internacional de Comercio S.A. (BICSA)
- Banco Metropolitano S.A.
Other
- Banco Nacional de Cuba (BNC)
- Banco Exterior de Cuba (BEC)
In addition, the Havana International Bank is registered in London.
Non-banking financial institutions
The Central Bank also regulates a number of other financial institutions, most notably:- Grupo Nueva Banca, S.A. (New Bank Group) - the principal shareholder of the following entities: Banco Internacional de Comercio, S.A., Financiera Nacional, S.A., Compañía Fiduciaria, S.A., InCreFin, S.A. It also holds 50.0% in the joint ventureJoint ventureA joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
Financiera Iberoamericana, S.A. and 40% percent in Caribbean Finance Investments Ltd. (CariFin). - Casas de Cambio, S.A. (CADECA), formed in 1994, this company operates money-exchangeMoney exchangeMoney exchange can refer to:* Currency exchange * Foreign exchange market...
kiosks