5 billion in direct collection and lots of support for small businesses

They take place today (June 14, 2024, ed.) the first sixty years of history of the Federation of Cooperative Credit Banks of Lombardy. For this reason, the annual Budget Assembly of the reality to which, at a regional level, institutions that refer to both Cooperative Banking Groups (Iccrea and Cassa Centrale) are associated, was held this morning precisely in Treviglio, where, exactly sixty years ago, on 14 June 1964, its official constitution took place.

During the Assembly, which met at the Teatro Nuovo, on the occasion of the renewal of the Board of Directorsof the Board of Auditors and the Board of Arbitrators, Alessandro Azzi was unanimously confirmed at the top of the Lombard Federation of BCCs. In office since 1991 (President of Federcasse from 1991 to 2017, of the BCC del Garda from 1985 to 2019 and current ABI President of the ABI Regional Commission of Lombardy) the lawyer Azzi has received a new mandate to continue his role at the Presidency of the Federation for the three-year period 2024-2027.

Support for the real economy: the numbers of the Lombardy BCCs updated as of 31 December 2023*

They are present in Lombardy 27 BCC with 723 branches in 518 municipalitiesin 149 of which they operate as sole banking presence (+10% from December 2022). At the end of 2023 they will count 210,972 members (+2.8% year-on-year) e over one million customers.

The total amount of jobs disbursed by the mutual banks to businesses and families in Lombardy, as of December 2023, is more than that 24.5 billion euros. Exceeds i 14.5 billion euros will be supported for the Lombardy production sector, 22.5% of which will be allocated to micro and small businesses in the area. Compared to the scope of destination of the credit of the financed companies, the market share of the mutual banks is higher (19.6%) with regard to employment at artisan businesses. Then the sector emerges agriculture, forestry and fishing (18.7%), followed by the services of tourism and catering (11%) and from the sector of buildings (11%).

With regard to the activity of direct collectioncustomer deposits of the BCCs in December 2023 overall exceed i 35 billion euros. There indirect collection it is beyond 12 billion euros. The gross suffering of the Lombardy BCCs are in sharp decline over the twelve months: -30% (compared to -13.8% recorded by the regional banking system).

The results of the BCCs were also good present in the province of Bergamowith 117 branches in 90 Municipalities (in 29 of which they represent the only banking presence), which recorded as of 31 December 2023 a direct collection Of 5 billion and 3.5 billion euros in loans. Particularly significant is the market share of jobs at small businesses which have from 6 to less than 20 employees (23.7%) and at microenterprises with a maximum of 5 employees (18.3%). Compared to the scope of destination of the credit of the financed companies, the market share of the mutual banks is higher with regard to loans to the agricultural sector (25.8%) and to that of real estate activities (21.3%); they result the shares relating to the manufacturing sector are also significant construction (19.9%) it’s at tourism and catering (17.8%). Sufferings are decreasing for the local mutual banks of the 39% compared to the previous year.

“The mutual banks are “original creatures”: a banking soul and a social soul that are not exclusive, but mutually reinforcing. An original and unique identity, to be preserved in the face of the homogenizing trends of the market, which is the basis of the relationship of trust that binds us to our members and to the territory in which we operate”, declared President Azzi on the sidelines of the meeting. «Even after the reform of Cooperative Credit and the establishment of the two Banking Groups (ICCREA and Cassa Centrale) – of which we recognize the fundamental role in the consolidation of both the capital and reputation of our banks – the mutual banks have been able to maintain and enhance identity, inspiration, values of the origins: elements that are evidently perceived by our customers, who recognize us as community banks. Today, as our Federation turns sixty, perhaps the best wish for Lombardy’s credit cooperation is to continue to honor and renew the roots that unite us, giving new answers to the new needs of local families and businesses. I am thinking in particular of the territorial welfare projects “Community Mutuals” and “CreaWelfare”, but also of the mutual crowdfunding experience “Community Funding” started in recent years. I welcome with pleasure and gratitude the request to continue my path as president for another three-year period, which I will face with commitment and passion, preparing the passing of the baton to pass on the work done so far to younger people”.

Among the guests who attended the assembly event: Guido Guidesi, Councilor for Economic Development of the Lombardy Region; George Gobbi, Director of the Milan branch of the Bank of Italy; Gian Domenico Auricchio, President of Unioncamere Lombardia; Maurice Gardini, President of Confcooperative; August of the Grass, President Federcasse; Joseph Maino, President of the BCC ICCREA Group; Carlo Antiga, Deputy Vice President of Cassa Centrale Banca; Peter Cafaro, professor of Economic History and author of the book “Una per centro. Half a century of history of Lombard cooperative credit between movement and network”.

60 years of history: the Federation of Lombard Rural Banks was born on 14 June 1964**

The official constitution of what at the time was called the Lombard Federation of Rural and Artisan Banks took place in the city of Treviglio on 14 June 1964, on the occasion of the XX Assembly of the Regional Union of Credit Cooperatives (active since 1945) at the Filodrammatici Theatre, where the announcement was also made of the launch of a common mechanographic (later IT) centre, of regional interest, with headquarters right in Treviglio. The proposal to give life to a real Federation found inspiration already in 1962, the year in which the Encyclical Mater et Magistra of John XXIII was promulgated: the Pontiff from Bergamo, also called by the name of “Cooperator Pope”, who wanted develop and give new impetus to the commitment of Catholics in the public life of the country.

72 Rural Banks operating in the regional territory participated in the event. At the end of 1964 there were a total of 112 Bcc in Lombardy (27 in Bergamo, 26 in Brescia, 21 in Milan and Cremona, 8 in Como, 4 in Mantua, 3 in Pavia and 2 in Sondrio) with 114 branches and 19,571 members. At the time, the collection of all the Lombardy CRAs was around 58 million lire (30 thousand euros) and the loans were 27 million lire (14 thousand euros).

The first president of the Lombardy Federation was Virginio Bontadini (from 1964 to 1973); his successors at the helm of the Lombard association were Vittorio Ghezzi (from 1973 to 1991) and Alessandro Azzi (from 1991 to today).

The first location it was rented in Via Telesio 22 in Milan, in autumn 1964, with peripheral detachments in Treviglio and Brescia. In 1972 a space was purchased in Via San Francesco d’Assisi, also in Milan. Thus the Treviglio and Brescia branches for accounting, assistance and auditing closed, while the Mechanographic Center remained in Treviglio until the inauguration of the current headquarters. On 12 May 1981 the first Board of Directors of the Lombardy Federation took place in new headquarters in Via Decorati al Valor Civile 15 which still today represents the House of the Lombard Bcc in the capital.