Annual report
STUDIES AND PUBLICATIONS
The Federation of Basque-Navarre Savings Banks currently compiles and publishes three lines of studies and analyses: the Financial Situation of the Consumer report, the Ekonomi Gerizan series of monographic studies and the Carbon Market Bulletin.
***The objective of these series is to produce and publish socio-economic information which is of interest to society. The Financial Situation of the Consumer report is compiled each quarter using the information gathered in the 1,600 surveys carried out among consumers over the age of 18 residing in the ACBC. The aim of the survey is to explore the perceptions, intentions and expectations of Basque consumers regarding a series of economic, financial and social variables.
The ACBC Consumer Confidence Index is compiled following an analysis of the data obtained and reveals how Basque consumers perceive the general economy and their home economics. The homogeneity of its basic data with that produced by European institutions on a national and European level enables a reliable contrast of the evolution of consumer confidence in each geographical area.
Ekonomi Gerizan is a series of monographic studies published annually which offer an in-depth analysis of socio-economic matters. Subjects are selected for discussion on the basis of their medium/long-term importance for society and Basque economies. Because of the public interest that we imagine these subjects and their publication will have, each edition of Ekonomi Gerizan is presented as a seminar at the University of the Basque Country Summer School which is held each year in San Sebastian.
The aim of the Carbon Market Bulletin is to present an overview of the profound latent socio-economic implications of climate change and sustainable development, not only for inhabitants of the ACBC but of the entire planet. In this bi-monthly publication, the bulletin provides up-to-date information about such subjects, with special emphasis on the greenhouse gas emission market.
To ensure that the information contained in our publications reaches as many people and is as useful as possible, all our publications are freely available from our website (www.fcavn.es)
Monographic Study and Summer University Seminar
The latest international economic growth cycle (1993 - 2007) was the longest and largest ever. The transformations which were apparent during this time were the result of the recent wave of globalisation which began at the end of the 2nd World War (Breton Woods Agreements) and which was the catalyst and driving force behind the development of information and communication technologies during the last two decades of the last century.
There have been significant economic changes: an increase in world trade, the greater role played by the economies of China, India and Brazil on the world stage, the offshoring of the production of goods and services, to name but a few.
There have also been important transformations in the sphere of finances and these include real-time interconnection of local financial markets, free flow of capital around the world and the development and use of financial engineering instruments (e.g. options, futures, derivatives, securitizations, structured products, hedge funds, etc.).
During this same period, a series of supranational institutions have also been created (United Nations Organisation, World Bank, International Monetary Fund, European Union, World Trade Organisation, etc.) and these are a non-explicit yet clear reflection of the size and direction of the situation as a whole.
These transformations have had an unavoidable non-neutral impact on individuals, on society, on culture and on state organisations and have been affected by the growing influx of information and communication technologies.
In the last four-month period of 2007, the situation changed radically as a result of the US subprime mortgage crisis. This change in situation has revealed the weaknesses, ineffectiveness, inefficiencies and inconsistencies of the entire system. In the space of only a few months, not only has this had devastating consequences for the international financial system but has also affected financial markets and finally real economies.
From an institutional and national level, attempts have been made to respond to the apparent effects but the way these have evolved seems to indicate that this crisis will be far from short term. Large questions have therefore arisen not only in relation to the overall financial system but also in relation to the current economic model and to the global governance system. There is also growing concern about the effects that this could have for society, both politically and culturally.
The University of the Basque Country Summer School, which is organized by the Federation, was held this year on 9th - 11th September at the Palacio Miramar in San Sebastian and was entitled “Global Crisis: Towards a new economic and social model”. A panel of important academic and financial figures were involved and the Governor of the Bank of Spain, Mr. Miguel Angel Fernández Ordóñez, and the President of the National Securities Market Commission (CNMV), Mr. Julio Segura, took part in the Closing Ceremony.
The 17th edition of the Ekonomi Gerizan editorial series focused on presenting and contrasting the different viewpoints of speakers at the Summer School, together with other collaborators who reflected on the origin, situation, evolution and possible solution of the current global crisis from different perspectives.
Financial Situation of the Consumer Report (CEC)
By obtaining reasonably reliable information and indicators systematically and periodically which serve to predict the evolution of the large macroeconomic aggregates, it is possible to compile studies and analyses to assess individual and corporate perceptions and predictions about the course of personal economies and the economy in general.
The decisions made by families regarding saving, consumption, investment and indebtedness are of unquestionable importance both from an academic and a corporate and institutional perspective and provide the means for analysing the implications and scope of such decisions. These decisions, which are based on how consumers perceive the economy in general and their own personal finances, can be predicted by means of the information gathered and provided by the consumer confidence and financial situation indexes.
The Consumer Confidence Index for the Autonomous Community of the Basque Country has been compiled since 1984 by the Federation of Basque-Navarre Savings Banks with a similar methodology to that used by European institutions to produce similar indexes throughout Spain and Europe.
The Financial Situation of the ACBC Consumer Report is based on this and other complementary indexes of both a subjective and macroeconomically statistical nature and by revealing the perceptions of Basque consumers enables these to be compared with those of consumers in similar socio-economic spheres. The report is compiled by surveying 1,600 people over the ages of 18 residing in the ACBC each quarter. The level of statistical confidence of the results obtained is 95% with an error margin of +/– 2.2%. In each stage of the survey, information is obtained which can be used to produce the ACBC Consumer Confidence Index and other complementary indexes, such as information relating to specific subjects such as saving, social welfare and household indebtedness.
Carbon Market Bulletin
The Basque-Navarre Savings Banks have traditionally been committed to environmental issues and in particular to corporate social responsibility by means of their social welfare work. In view of this environmental commitment, the Federation published the Carbon Market Bulletin for the first time in 2005 with member Savings Banks instigating a series of relevant services.
In recent decades, there has been a progressively growing awareness of the pressing need for the international economic growth model to respect the environment and natural resources both in the short and long term. The current energy model is based first and foremost on fossil fuel extraction through a series of processes which result in CO2 emissions with their many harmful effects for the planet's atmosphere and consequently the environment. Managing and mitigating these emissions has become an essential element in short-term government and corporate planning. Different instruments have therefore been implemented and among the most important is the regulation of CO2 emissions as a good which can be commercially and financially traded.
Every two months, the Carbon Market Bulletin provides information about the emission trading market, both in terms of recent activity and its foreseeable evolution. Information is also collected regarding the activity of companies and public administrations in terms of active environmental preservation.
