We must choose between boxes and benches. While banks perform under the figure of the for-profit corporation , the savings banks are guided by other legislation working under the guise of limited partnership and have to use part of their profits to social projects.
Savings banks serve social needs
These were created for two purposes : Raising capital and social support . They are recognized as private foundations for social, therefore exist to help the working class to take power savings . Over 50 % of its benefits become part of its required reserves , as a way to ensure that savings remain solvent over time.
Moreover, the rest of the benefits of a savings must be allocated to social projects of various kinds that are beneficial to the regions where they are located as it is these whom gerencian . In fact , according to the Spanish Confederation of Savings Banks , said that in 2007 , the savings banks of Spain allocated 1.824 billion euros for social projects .
The savings banks were created to specialize in mortgage loans , deposits and pension funds as a way for people to purchase goods that are needed in everyday life as dwellings, cars etc. and also that could save your money thinking ahead .
Only some savings banks have offices outside the community where they were born , something that could be a problem for customers who are traveling and need to be handled directly by the staff of the savings bank in which hired some service.
Banks focus towards profit
The world’s banks behave in the market as financial intermediaries and profit raising funds on deposit . Also providing all types of financial services , either for investors who wish to invest money putting forward as reservoirs , and for those who need financing in order to make a venture profitable , to consume or purchase a car or home , checking or savings accounts , get credit cards , purchase foreign exchange.
A bank can go public , why a person could invest in bank shares determined bid whose profitability can vary according to the interplay of supply and demand. Banks in Spain , are listed on the IBEX 35 . They also have offices everywhere so they can cover the largest market share possible. They are led by a board of directors that is elected by the shareholders’ meeting .