21 st wsbi world congress kuala lumpur, malaysia savings banks and foundation, as supporters of...
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21 st WSBI World Congress
Kuala Lumpur, Malaysia
Savings banks and Foundation, as supporters of
communities, municipalities and local authorities:
an Italian view
21 September 2006
Fondazione di Venezia
Prof. Giuliano Segre Chairman of
Fondazione di Venezia, Italy
Local governments are an organisational form of any society.
National States have been existing for a long time, but local communities represent a binding constraint that exist everywhere and have been also reinforcing everywhere.
In a civilised Country each piece of territory has to be governed: many government duties have a local scale and the modern local governments were borne in a similar fashion.
However, there exist many examples of local government forms that put down their roots in ancient times.
Nowadays every country are organised in local governments.
Fondazione di Venezia
Fondazione di Venezia
Country First level Second level Third level
Federal States
Germania 13.854 323 Belgio 589 10 Austria 2.359
Unitary States
Spagna 8.106 50 17 Francia 36.565 96 22 Irlanda 80 29 8 Italia 8.100 103 20 Danimarca 275 14 Grecia 1.033 50 Paesi Bassi 504 12 Portogallo 278 Regno Unito 433 37 Svezia 289 21 Finlandia 448 Lussemburgo 118
Totale EU 73.031 745 67
Local governments by country and geographic scale in Europe
In some cases local governments result from a re-organisation of national governments
Fondazione di Venezia
In other cases local governments have been the starting point for building National States
Fondazione di Venezia
The burden of local fiscal revenues over the total amount of taxes paid by citizens specifies the form of National State
Fondazione di Venezia
2 - New Federal States 4 - New centralized States1 - Federal States 3 - Decentralized States 5 - Centralized States
0
5
10
15
20
25
30
35
40
45
50
Austri
a
Germ
ania
Austra
lia
Canad
a
Stati U
niti
Svizze
ra
Belgio
Spagn
a
Danim
arca
Finlan
dia Italia
Svezia
Giappo
ne
Grecia
Irlan
da
Regno
Unit
o
Franc
ia
Luss
embu
rgo
Paesi
Bassi
Porto
gallo
1975 1999
What does it happen whenever fiscal revenues are not enough for financing public expenditures?
Fondazione di Venezia
The relationship between debtors and finance system always has been difficult and is more difficult for local governments
In this case a Foundation may be a good allied with local powers
Fondazione di Venezia
In Italy foundations have different forms:
they are about 3,000.
In this framework, 88 Foundations
were borne in 1990 as a result of the privatization process that
underwent the 88 public banks existing at that time.
Fondazione di Venezia
At the beginning, each Foundation owned the 100% of the capital stock of privatized bank. Today, after 15 years
Fondazione di Venezia
Equity interest of banking foundations
1990 1995 1996 1998 1999 2000 2001 2002 2003 2004
A) Foundation with stake in bank > 50% 88 62 56 47 44 23 22 20 15 16
B) Foundation with stake in bank < 50% 0 26 30 36 36 57 57 59 63 58
C) Foundation with no stake in bank 0 1 3 6 9 9 10 10 11 14
Total 88 89 89 89 89 89 89 89 89 88
Fondazione di Venezia
2004
16%
18%66%
> 50%
< 50%= 0%
1999
40%
50%
10%
> 50%
< 50%= 0%
1990
0%
100%
0%
> 50%
This kind of foundations act as normal foundations, but they use revenues generated by their assets for financing local activities as shown in the following figure
Fondazione di Venezia
private entities
59%
local authority
23%
national public
entities18%
The following table shows as financing is distributed by sector of intervention
Fondazione di Venezia
education3%
other15%
art8%
general grants51%
building23%
Same realizations
Fondazione di Venezia
Compagnia di San Paolo
(Restauro Sala degli Svizzeri)
Fondazione Monte dei Paschi di Siena
(Azienda per Biotecnologie)
Foundations are no-profit organisations that operate in order to produce goods or services either that are not produced by the market or that governments are not able to provide
Fondazione di Venezia