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The Portuguese Cooperative Credit System

2016; Springer International Publishing; Linguagem: Inglês

10.1007/978-3-319-28784-3_10

2197-7178

Paula Cabo, João Rebelo,

Microfinance and Financial Inclusion

This paper presents a literature review on the regulatory framework of the Portuguese cooperative credit system and some historic data. The aim is to understand their role in the Portuguese banking industry and how the regulatory framework affects cooperative banking activity. The cooperative credit system in Portugal comprises only agricultural credit cooperatives (Caixas de Crédito Agrícola Mutuo—CCAM). Its present corporate format was created in 1911, but the genesis of Portuguese agricultural credit cooperatives dates back to the sixteenth century and can be regarded as a typical example of how public policy can influence the development of cooperative credit institutions. The Caixa Central de Crédito Agrícola Mutuo is the pivotal institution in the Crédito Agrícola Group, with a remit that is the mainstay of the group, namely the strategic global coordination, supervision and guidance of its associates. The CCAM’s strong customer deposit base and prudential credit management policy have proved to be crucial in confronting current hard times. Indeed Crédito Agrícola is the only one of the major Portuguese banks that has not experienced negative profits since the beginning of the present economic and financial crisis.