Banco De Venezuela – An International Universal Bank
Banco De Venezuela is an international universal bank that is based in Caracas. It is abbreviated as BDV) The bank was initially found in 1883, at that time it was called the Banco Commercial although it changed its name to Banco De Venezuela on the 2nd of September 1890. In the initial stage, the purpose of the bank was as a loan and financial institution which serves for the Venezuelan government. In 1920, it grew and had 10 branches by that time in the country. As there was a lack of central bank in the country, Banco De Venezuela became one of the six institutions which had the right to issue banknotes. The right was canceled when the Banco Central De Venezuela came into being in the year 1940.
Banco De Venezuela was the market leader in the country of Venezuela until the year 2007. After 2007, it decreased to the third position with a market share of 11.3% for deposits. By June 2008, Banco De Venezuela had 285 branches all around the country. There are approximately 4,050 employees working in the organization at this time. The headquarters of the bank is in Caracas.
In the year 1976, Banco De Venezuela celebrated the opening of its 100th branch in the nation. The services of the bank got improved as per the time. In the year 1978, the bank announced a 24-hour customer service, credit cards were introduced and a new point of sales terminal was introduced. In 1977 and 1979 the bank introduced its branches in New York and Curacao respectively.
In order to provide services in the international world, Banco De Venezuela opened a subsidiary called the Banco De Venezuela International outside the country. The headquarters of this bank was inaugurated in Caracas. On the 6th of October 2000, the Banco De Venezuela purchased the entire 100% of Banco Caracas and thus was formed as the largest bank in the country.
The major competitors of Banco De Venezuela are Banesco, Banco Mercantil and BBVA Banco Provincial. An overview of the competition includes;
- Banesco – has around 384 branches throughout Venezuela. It is one of the largest private financial institutes in Venezuela. There are more than six-million clients of Banesco. Headquarter of Banesco is in Caracas. The largest headquarter of the bank is located in Latin America.
- Banco Mercantil – it was founded in 1917. The name was changed to Banco Neerlando Venezuelan in 1925. Banco Mercantil has its subsidiaries in numerous countries. These countries include Brazil, Curacao, Germany, U.S, Columbia, and the United Kingdom.
- Banfoandes – was developed in 1951 by the Venezuelan development Corporation. It oversaw around 170 agencies until the year 2009.
- Bancaribe – the bank was found in 1954 and owns about 113 branches in Venezuela. It provides services to about 800,000 clients. Headquarters of Bancaribe is in Caracas.
Apart from the above mentioned, there are other competitors as well.
Involvement Of The State
In the year 1993, Banco De Venezuela had to struggle for three years but still the bank was taken in control by Banco Consolidado and was formed as the Banco De Venezuela Consolidado. Although in 1994, the Banco Consolidado was closed due to the banking crisis in Venezuela in 1994. Banco De Venezuela was closed due to weak financial muscle. On the date, 9th of August 1994, Banco de Venezuela developed as the 10th bank which was bailed out by the government of Venezuela during the extreme days of the financial crisis. Banco de Venezuela took a majority stake for an estimate of US $294 million. Later, with the help of Grupo Santander, the bank was again privatized in 1996. Grupo Santander purchased 93.38% shares for the price of about US $350 million.
Grupo Santander started to discuss a possible acquisition of Banco De Venezuela in June 2008 although the plan was interrupted and stopped by the Venezuelan government. On the other hand, in the same year, the president of Venezuela Hugo Chavez proposed that he was interested in the purchase of the bank and they will surely nationalize it soon. They couldn’t finalize the negotiations by March 2009. At last in May 2009, a final agreement was signed for the US $1.05 billion and the deal was sealed.
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