Fainé: 'We seek social advancement by funding projects that create opportunities for people to progress'

CECA held its 117th General Assembly today, which was chaired by Isidro Fainé, Chairman of CECA and Fundación "la Caixa", and President of the World Savings and Retail Banking Institute (WSBI), an organisation that celebrates its centenary this year.

The event brought together representatives of CECA's member credit institutions and foundations. The bank and savings bank groups represented by CECA account for 38% of the deposits of the Spanish financial system. In addition, the association brings together thirty-two banking and ordinary foundations that are responsible for the design and implementation of the Obra Social.

During the meeting, Isidro Fainé was unanimously re-elected Chairman of CECA. CECA's General Assembly also reappointed José Ignacio Goirigolzarri, Chairman of CaixaBank, as Vice-Chairman of the Board of Directors, Manuel Azuaga, Chairman of Cecabank, as a board member, and Josep A. Cifre, Chairman of Colonya Caixa Pollença, as Secretary and board member.

In his speech, the Chairman of CECA, Isidro Fainé, discussed CECA's objectives in this new phase: 'Our purpose remains unchanged: contribute to social advancement by funding projects that create opportunities for people to progress, striving to do all we can to promote financial inclusion, as a precursor to social inclusion, and with a special sensitivity towards the most vulnerable groups'.

The chairman also stressed that 'CECA is committed to a model of quality and responsible banking. We will continue to focus on the customer to provide the best possible service and address the major challenges of our time, namely the transition towards a more sustainable, less unequal and therefore more cohesive society'.

In relation to the economic situation, Isidro Fainé pointed out 'some important challenges that, as a country, all stakeholders must face. On the one hand, we must strengthen business investment, using and, if possible, prolonging the momentum provided by European funds; we must improve productivity, placing more emphasis on investment in human capital, innovation and entrepreneurship; and finally, we must underpin the country's financial stability, which requires, among other things, financial institutions to remain efficient and solvent, and that the public sector ensure budgetary sustainability'.

Fainé also referred in his speech to the measures being implemented by CECA and the sector as a whole to support society. In this regard, he highlighted 'three unique initiatives, such as the protocol for the elderly, which aims to contribute to a more inclusive economy, the service protocol for rural Spain, geared towards tackling the serious problem of depopulation, and finally the mortgage code of good practices, which in 2023 has extended its coverage to all the country's middle classes'.

The CECA sector has consolidated its position as the leading private social investor in Spain

The Obra Social of CECA entities has once again this year demonstrated its essential role as a lever for social, cultural and economic progress. CECA's member entities allocated a total of €851 million for Obra Social in 2023, an increase of 6.4% compared to the previous financial year. Thanks to this endowment, more than 80,960 activities have been conducted, with more than 30 million beneficiaries, with special focus on the most vulnerable groups. Since the approval of Spanish Law 26/2013 on Savings Banks and Banking Foundations, the Obra Social of CECA's member entities have invested more than €7.8 billion and carried out more than 930,000 activities. At the end of 2023, there was a 19.9% increase in investment compared to 2014, which illustrates the future sustainability of this social model, largely thanks to the reforms promoted by the aforementioned law.

Obra Social operates in a number of areas, which seek to cover all segments of the population, with a special focus on the most vulnerable people. As in previous years, the field of Social Action has been the area that has received the greatest investment, €312 million (36.7% of the total), which has been allocated to more than 16,600 activities involving assistance, health and welfare, inclusion, social kitchens and volunteering programmes.

Education and Research, with an investment of €238 million (28% of the total) and 9.1 million beneficiaries, ranked second. Within this area, the entities promote progress and innovation with training, education, research and scientific dissemination and R&D programmes. In addition, the sector supports financial inclusion by facilitating access to financial services for all groups, especially the most disadvantaged.

Furthermore, the areas of Culture and Heritage were allocated €179 million in 2023 (21.1% of the total) and Local Development and Job Creation accounted for almost €78.8 million (9.3% of the total), earmarked for programmes to support the local business fabric, and to promote employment and entrepreneurship, among others.

Finally, more than €42 million (5% of the total) was jointly allocated to Sport, Leisure and the Environment. Sport is full of examples of dedication, effort and perseverance, values that Obra Social shares. In addition, the CECA sector has a strong commitment to sustainable development by collaborating with different organisations, encouraging the use of sustainable products and services, and undertaking activities for the protection of natural environments.

Obra Social places the 2030 Agenda at the forefront of its activities, strongly supporting its progress and implementation and contributing to the Sustainable Development Goals (SDGs). Thus, in 2023, the CECA sector's investment in Obra Social has continued to focus on the 17 SDGs and has joined forces to help reinforce those areas requiring greater attention from Spain, such as health and welfare (3), industry, innovation and infrastructure (9), quality education (4), decent work and economic growth (8), sustainable cities and communities (11) and the end of poverty (1).

The Foundations and Obra Social Committee, the main forum for exchanging experiences, cooperation and research in relation to Obra Social, also held its annual meeting today. This is a statutory and advisory body of the association that brings together representatives of the sector's banking and ordinary foundations.

Obra Social extends its reach internationally

From an international perspective, CECA is taking on an increasingly global role through the World Savings and Retail Banking Institute (WSBI). This organisation, which represents the interests of more than 6,400 financial institutions from 69 countries with aggregate assets under management of USD 13.25 trillion, acts as a major natural platform for CECA's international outreach.

During 2023, WSBI has set up a Social and Philanthropic Council, chaired by Isidro Fainé. The main functions of this body are to give visibility to the Obra Social actions undertaken by its member entities and to promote the exchange of experiences and cooperation in order to develop joint initiatives at a global level. WSBI members currently devote an aggregate of USD 2.8 billion per year to Obra Social around the world.

The priorities of the CECA sector in 2024

The CEO of CECA, José María Méndez, focused on the current economic and financial situation, addressing the main challenges and priorities of the sector. The activity of associations continued to be very intense in the European regulatory context throughout 2023, with two projects being of particular relevance: Crisis Management and Deposit Insurance (CMDI) and Retail Investment Strategy (RIS). At the national level, he highlighted the Financial Customer Protection Authority project, the Next Generation EU programme and the taxation of the banking sector.

José María Méndez also addressed the priorities that are worth reflecting on in the run-up to 2024. On the one hand, the digital euro, a key project for the financial industry on which CECA is working to achieve a balanced approach, for the stability of the financial system if it is ultimately implemented. On the other hand, he highlighted the impact that the transposition of certain European directives, such as those on sustainability reporting, consumer credit and remote marketing of financial products, will have on the sector.

Finally, he assessed the current situation of the Spanish banking sector ten years after the approval of the Law on Savings Banks and Banking Foundations, highlighting 'its robustness with more capitalised institutions, which favour stability and promote the flow of credit to families and SMEs in an environment shaped by challenges in the Spanish economy such as the digital and environmental transformation'.