Municipal Bank of Rosario
Encyclopedia
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
in Rosario
Rosario
Rosario is the largest city in the province of Santa Fe, Argentina. It is located northwest of Buenos Aires, on the western shore of the Paraná River and has 1,159,004 residents as of the ....
, province
Provinces of Argentina
Argentina is subdivided into twenty-three provinces and one autonomous city...
of Santa Fe
Santa Fe Province
The Invincible Province of Santa Fe, in Spanish Provincia Invencible de Santa Fe , is a province of Argentina, located in the center-east of the country. Neighboring provinces are from the north clockwise Chaco , Corrientes, Entre Ríos, Buenos Aires, Córdoba, and Santiago del Estero...
, Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
. Its central offices are located in the downtown area, on San Martín St.
San Martín Street (Rosario)
San Martín Street is an important street in Rosario, Santa Fe Province, Argentina. It runs north–south through the center of the city, from the coastal avenue by the Paraná River to the southern limit of the urbanized area...
, and there are several additional offices throughout the city. It is focused in small and medium enterprise
Small and medium enterprise
Small and medium enterprises or small and medium-sized enterprises are companies whose headcount or turnover falls below certain limits.The abbreviation "SME" occurs commonly...
s and other organizations, especially through microcredit
Microcredit
Microcredit is the extension of very small loans to those in poverty designed to spur entrepreneurship. These individuals lack collateral, steady employment and a verifiable credit history and therefore cannot meet even the most minimal qualifications to gain access to traditional credit...
s, and may be considered an "ethical bank". http://guadaloupe.org/guadalupe/content/view/16/32/
The Municipal Bank was founded in 1896 to support the financial needs of the citizens and small businesses in the highly productive region of southern Santa Fe Province, centered in Rosario. At the time, the city had around 92,000 inhabitants and was already the most important port
Port of Rosario
The Port of Rosario is an inland port and a major goods-shipping center of Argentina, located in the city of Rosario, province of Santa Fe, on the right-hand shore of the Paraná River, about 550 km upstream from the Atlantic Ocean.-Overview:...
on the Paraná River
Paraná River
The Paraná River is a river in south Central South America, running through Brazil, Paraguay and Argentina for some . It is second in length only to the Amazon River among South American rivers. The name Paraná is an abbreviation of the phrase "para rehe onáva", which comes from the Tupi language...
. The idea of creating a municipal financial institution was expressed in 1893 by mayor Floduardo Grandoli, citing the proliferation of "centers of usury
Usury
Usury Originally, when the charging of interest was still banned by Christian churches, usury simply meant the charging of interest at any rate . In countries where the charging of interest became acceptable, the term came to be used for interest above the rate allowed by law...
" that exploited those in need of credit, especially the poor (something not addressed by the profile of the Provincial Bank of Santa Fe
New Bank of Santa Fe
The New Bank of Santa Fe is a bank in Santa Fe Province, Argentina.Originally named Provincial Bank of Santa Fe, it was established as a mixed state/private bank on 5 June 1874, based on an initiative of governor Servando Bayo, justified in the need to provide credit for the blossoming productive...
, which granted loans only to demonstrably solvent persons). Acting on this, the municipal Counseling Commission passed a bill (on 1 February 1895) dictating an "Organic Charter of the Municipal Bank of Loans and Savings Accounts". The bank opened exactly one year later.
The seat of the bank was moved in 1905. Its name was changed to its present form on 14 May 1940 by a municipal bill. Its location was moved again, and for the last time so far, in 1986.
In 2006, after some political controversy, the bank was capitalized by the municipality in order to comply with new regulations dictated by the Central Bank
Banco Central de la República Argentina
-Overview:Established by six Acts of Congress enacted on May 28, 1935, the bank replaced Argentina's Currency board, which had been in operation since 1890...
, and transformed into a joint stock company
Joint stock company
A joint-stock company is a type of corporation or partnership involving two or more individuals that own shares of stock in the company...
, with only 1% of the stock belonging to the municipal state. A special clause was added, dictating that this minimum share is unchangeable, so as to prevent hypothetical attempts at privatization
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
. http://www.lacapital.com.ar/2006/07/05/economia/noticia_307357.shtml
The bank's mission focuses on the management of the finances of the municipal state and the support of the region's small and medium enterprise
Small and medium enterprise
Small and medium enterprises or small and medium-sized enterprises are companies whose headcount or turnover falls below certain limits.The abbreviation "SME" occurs commonly...
s. At present, it offers loans for a variety of purposes, such as international trade
International trade
International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product...
, real estate operations, automobile purchases, and the installation of domestic natural gas lines; it finances the preservation of the architectonic heritage of the city through special loans devoted to the restoration of historical facades; and it offers several forms of insurance, credit cards, and other services. The bank also emits and sells the magnetic stripe card
Magnetic stripe card
A magnetic stripe card is a type of card capable of storing data by modifying the magnetism of tiny iron-based magnetic particles on a band of magnetic material on the card...
s used as pre-paid tickets for Rosario's urban bus system. Finally, it has agreements with clubs, unions, schools and other institutions.
The associated Municipal Bank of Rosario Foundation organizes cultural activities and manages municipal events. Its professional specialist groups publish studies on a variety of topics (social, economic, ecological, etc.). The Foundation manages an Auditorium at the central offices of the bank, with a capacity of 250 people, which is available for conventions, lectures and film projections.