Fondazione di Venezia
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
Prof. Giuliano Segre
Chairman of
Fondazione di Venezia, Italy
Fondazione di Venezia
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
Local governments by country and geographic scale in Europe
Country
First level Second level Third level
Federal States
13.854
589
2.359
323
10
Spagna
Francia
Irlanda
Italia
Danimarca
Grecia
Paesi Bassi
Portogallo
Regno Unito
Svezia
Finlandia
Lussemburgo
8.106
36.565
80
8.100
275
1.033
504
278
433
289
448
118
50
96
29
103
14
50
12
Totale EU
73.031
745
Germania
Belgio
Austria
Unitary States
17
22
8
20
37
21
67
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In some cases local governments result from a reorganisation of national governments
Fondazione di Venezia
In other cases local governments have been the starting
point for building National States
Fondazione di Venezia
Fondazione di Venezia
In the modern age Local Authorities need fiscal
revenues from citizens
Fondazione di Venezia
The burden of local fiscal revenues over the total
amount of taxes paid by citizens specifies the form of
National State
2 - New Federal States
4 - New centralized States
1 - Federal States
3 - Decentralized States 5 - Centralized States
1975
1999
Au
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m
a
Au nia
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St ad
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iz i
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r
Be a
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D ag
an n
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nl
an
di
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l
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G ez
ia ia
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on
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re
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eg n
no da
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n
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ss a n
em cia
Pa bu
es rgo
iB
Po as
rto si
ga
llo
50
45
40
35
30
25
20
15
10
5
0
Fondazione di Venezia
What does it happen whenever fiscal revenues are not
enough for financing public expenditures?
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In this case local governments may take out a bank loan
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However to pay off a debt is not always an easy task
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
Indeed, this is the opportunity for the Foundation’s
intervention
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1) It could be a charity support
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2) it may be aimed at improving quality of life
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3) It also may help local economic development
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4) or it could enhance the social development
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
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
88
89
89
89
89
89
89
89
89
88
Total
Fondazione di Venezia
1990
> 50%
1999
100%
> 50%
50%
0%
0%
10%
= 0%
2004
> 50%
18%
66%
= 0%
16%
< 50%
40%
< 50%
Fondazione di Venezia
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
national
public
entities
18%
private
entities
59%
local
authority
23%
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The following table shows as financing is distributed by
sector of intervention
building
23%
art
8%
general
grants
51%
education
3%
other
15%
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Same realizations
Compagnia di San Paolo
(Restauro Sala degli Svizzeri)
Fondazione Monte dei Paschi di
Siena
(Azienda per Biotecnologie)
Fondazione di Venezia
Ente Cassa di Risparmio di Firenze
(Progetto metropolitana leggera)
Fondazione di Venezia
Fondazione di Venezia
(Teatro La Fenice)
Fondazione di Venezia
Fondazione di Venezia
(Canaletto, Il trionfo della Veduta)
Fondazione di Venezia
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
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The experience of Italian Foundation is
useful for understanding future
development of Savings Banks System