Bank foundation ? a symbiotic legal institution at the crossroad of banking system and non-profit sector

• Author: Magdalena Catargiu
• Position: Alexandru Ioan Cuza' University of Iasi
• Pages: 44-53

Bank foundation – a symbiotic legal institution

at the crossroad of banking system and non-profit sector

Ph.D. student Magdalena CATARGIU

1

Abstract

In the context of the development and omnipresence, in Europe, of the non-profit

sector and due to the di versification of the legal entities tha t are involved in the

configuration of the third sector, an lega l analysis of the foundation of banking or igins, is

very appealing.

Throughout this study we a im to point out key moments in the evolution of this

particula r figure, mainly in the Italia n legislation. Nevertheless, we inte nd to identify the

legal na ture of the foundation of ba nking origins in order to draw a line between banking

and philanthr opic activities.

Keywords: foundation of ba nking or igins, non profit sector, Italian legislation, corpor ate

foundation.

JEL Classification: K39

I. Diachronic aspects of banking foundations

In the Italian legal system, the creation of banking foundations has not

been the consequence of the legislator’s particular concern, but the effect of the

process of reorganization and privatization of banking institutions. We refer mainly

to savings banks. Originally, they were charitable institutions which did not operate

in the banking system. Their establishment took place in the late 18th century, in

the context of philanthropic ideas` flowering among the wealthy. There were thus

benevolent associations aiming to promote and support disadvantaged groups and

to encourage savings. Their numerical development led to the possibility of

identifying a primary typology.

In regard to the founder and to the legal nature of the property, there ar e

two main categories:

- Associative savings institutions, which were established throughout

private contributions;

- Savings institutions based on foundation’s framework, created at the

initiative and with the participation of a public entity or a charitable institution2.

The propose of the activity and the inner organization outlines three types

of savings institutions:

- Associations aiming to conduct banking activities, namely collecting

savings;

- Charitable foundations that had only administrative bodies;

1 Magdalena Catargiu, „Alexandru Ioan Cuza” University of Iaşi, m_catargiu@yahoo.com

2 Marcello Clarich, Andrea Pisaneschi, Le fondazioni ba ncarie. Della holding creditizia al`ente non

profit, Societa editrice Il Mulino, Bologna, 2001, p. 20-21.