Information obtained from Cuban Government, CEPEC Department Internet site on Cuba s Department of Foreign Commerce

Transcription

1 Institute for Cuban & Cuban-American Studies No reproduction in any format without express written permission from the copyright holder All Rights Reserved, University of Miami Information obtained from Cuban Government, CEPEC Department Internet site on Cuba s Department of Foreign Commerce (Información obtenida por Gobierno de Cuba, Departamento Cepec Sitio del Comercio Exterior de Cuba) CUBA S BANKING SYSTEM The Cuban economic policy has substantially evolved towards a process of adjustment according to the new circumstances under which its relations develop, the bank system playing new and important role. A significant development in this sector was the separation of the central and commercial bank functions, which were the responsibility of Banco Nacional de Cuba (National Bank of Cuba) for over three decades. Banco Central de Cuba (BCC) was established through Decree-Law No. 172 of May 28, It is an institution capable of performing the basic functions of a central bank. At the same time, a two-level banking system made up of Banco Central de Cuba and a number of non-banking financial banks and institutions were established. As the leading authority in the Cuban banking system, the BCC is responsible for issuing our national currency and ensuring its stability; contributing to the macroeconomic equilibrium and a well planned economic development; protecting our country s international reserves; proposing and implementing a monetary policy conducive to attaining our national economic objectives; ensuring the normal operation of internal and external payments; passing legally binding regulations; supervising financial institutions and representative offices set up in our country and any other functions as provided for in our legislation.

2 Likewise, the State Council, through Decree-Law No. 173 of May 28, 1997, established the proper legal framework to facilitate an efficient performance by financial institutions, as required by our present and future economic development. The aforementioned Decree-Law No. 173 not only regulates the work of banks as was provided for in the legislation in force until May 1997, but also of non-banking financial institutions; establishes the requirements for the setting up of financial institutions; facilitates the creation of the General Register of banks and non-banking financial institutions; specifies the characteristics of financial intermediaries concerning capital, operations and cash resources; specifies the main powers of Banco Central de Cuba in terms of banking supervision; regulates voluntary liquidation, intervention and compulsory liquidation and regulates the banking secrecy. In order to provide universal financial services and support the credit requirements of the country, the National Banking and Financial System, under the leadership of Banco Central de Cuba, consists of 8 commercial banks, 18 non-banking financial institutions, 12 foreign bank representative offices and 4 representative offices of non-banking financial institutions. BANKS Banco Nacional de Cuba (BNC). Securing and granting of credits in national and foreign currencies; centralization of relations with foreign export credit guarantee agencies, as decided by Banco Nacional de Cuba; establishment of export credit guarantee agencies in accordance with the legislation in force; record keeping, control, service and attention of the foreign debt incurred by the Cuban State and Banco Nacional de Cuba with foreign creditors up to the date of entry into force of Decree-Law no. 172 of 1997 of Banco Central de Cuba. Banco de Crédito y Comercio (BANDEC). A typical commercial bank, supplying a variety of services and, consequently, all types of brokerage operations and business. Two hundred and twenty three (223) fully automated branch offices throughout the country, 121 of which are interconnected through the Public Data Transmission Network, which allows for 80% of their operations. Banco Popular de Ahorro (BPA). Reception of cash in sight and fixedterm deposits in the convenient modalities. Granting of short, medium and long-term loans, credits and finance. Provision of factoring and financial

3 leasing services as well as other types of financing. Issuing, acceptance, endorsement, guarantee, discounting, purchase or sale of and operations with negotiable commercial documents; provision of all types of administration services and securing, reception and keeping of securities deposits under its custody and administration; signing of cooperation, partnership and economic integration agreements and agent bank operations. Banco Exterior de Cuba (BEC). Bank account opening and operation for payment and collection both in Cuba and abroad; securities collection and formalities; issuing of Letters of Credit, Guarantees and Bank References; securing and granting of credit facilities in national and foreign currencies; investment in other financial institutions or organizations based in Cuba and abroad; direct official relations with Export Credit Guarantee Agencies and business involvement with those agencies; purchasing of Cuban companies and other entities debts, at its entire responsibility. Banco Financiero Internacional S.A. (BFI). Reception and granting of sight or fixed deposits; reception and granting of loans and other types of financial credits; fund transfers to and from other countries; purchase and sale of precious metals, foreign currency and securities; purchase and sale of national legal currency; reception of securities expressed in foreign currency, under custody or administration; property administration services, financial and other types of research and brokerage operations; issuing of Letters of Guarantee; Letters of Credit, Bank References and similar documents, and establishment of agent agreements with international banking institutions. Banco Internacional de Comercio S.A. (BICSA). Reception and granting of sight and fixed deposits; reception and granting of loans or any other type of credits; purchase and sale of foreign currency, precious metals and securities; guarantee of financial bills and issuing of letters of guarantee, documentary credits and any other documents relating to international or at frontier trade. Banco Metropolitano S.A. (BM). Current and savings accounts services in national and foreign currencies; deposit certificates and fixed-term deposits in foreign currency; collection and payment of traveler cheques and national and international credit cards; 24-hour automatic teller machine services in its two facilities; private passwords to clients for operation of their bank accounts from other parts of the country or abroad without additional charges; direct private bills payment by clients from their own accounts; cashier services on Saturdays from 8:30 a.m. to 3:00 p.m.; remittance of daily accounts statements by fax or electronic mail without additional charges; conditional transfers, bill discounts, rent of

4 safe deposit boxes and any other banking operations related to their clients in accordance with the legislation. Banco de Inversiones S.A. (BI). All types of banking business, especially those related to investment finance and administration; fund raising and granting of credits for its own account or as a fiduciary agent for the account of national or foreign legal persons or individuals; advisory to national or foreign legal persons or individuals on banking and stock exchange issues as well as with regard to investment project financing; purchase or sale of stocks, obligations, mortgages and any kind of securities; legal representation, function or authority in accordance with the legislation. Non-Banking Financial Institutions Grupo Nueva Banca S.A. Issuing of obligations of Grupo Nueva Banca S.A. to raise funds with a view to increasing their sources of financing; granting of stockholders loans to those organisations where Grupo Nueva Banca S.A. has shares in their social capital; business involvement with other legal persons to finance a certain type of production and share in the distribution of profits generated by such financing; investment in the social capital of other organisations, being 100% Cuban or foreign companies or joint ventures, thus becoming their stockholder, after receiving the sanction of Banco Central de Cuba; administration of other organisations where Grupo Nueva Banca S.A. is involved as a shareholder or financing institution; all types of functions performed by non-banking financial institutions and compatible with their corporate objective as per Decree-Law no Financiera Nacional S.A. Export, import and investment finance; leasing, factoring, forfaiting; financial engineering and business management services as well as export project development and promotion services; economic and financial consultancy services; accounting and statistics services; automated systems; staff training; advisory on budget preparation, tariffs and taxes; interest rate and exchange risk coverage and debt financing operations. Casas de Cambio S.A. (CADECA). Purchase of convertible currency of unrestricted use with US dollars or Cuban convertible pesos, purchase of convertible currency with Cuban pesos; sale of Cuban convertible pesos for Cuban pesos; advance cash against credit cards; exchange of traveler cheques; exchange of US dollar denominations and Cuban convertible pesos and handling of deposits to be credited in bank accounts. Compañía Fiduciaria S.A. (CF). Fiduciary activities based on international practices; and all types of trust responsibilities including

5 financial solutions in terms of investment, fund administration for specific purposes, guarantee depository services, real estate development and accounting and statistical activities; participation in other organizations social capital; consultancy on companies re-organization, management and technological innovation processes; inter-organizational collection management and financing control; Fiscal Agency, Testamentary Execution and Judicial Administration. Rafin S.A. Export, import and investment finance; leasing, and forfeiting services; monetary fund administration in convertible currency of unrestricted use from Cuban companies and institutions centralized funds and reserves; financial engineering, specific problem management, financial and economic policy consultancy services; debt refinancing operations; shareholder representation to the management of Cuban or foreign stock companies; coverage and reference to the financial support of international business operations of Cuban-based companies; extraterritorial operations in free zones and industrial parks. Finalse S.A. Export, import and investment finance; debt refinancing operations; financial engineering and business management services; leasing, factoring and forfeiting operations; borrowing of funds to conduct authorized operations; opening of bank accounts of any kind and establishment of bank deposits in their name in banks based in Cuba or abroad, following the appropriate procedure; consultancy services on economic and financial issues. Fimel S.A. Export and import finance; financial engineering and business management services; consultancy services on economic and financial issues; accounting and statistical services; factoring promotion and implementation as well as company support in that field; investment finance; interest rate and exchange risk coverage; debt refinancing operations; leasing operations; opening of bank accounts of any kind and establishment of bank deposits in their name in banks based in Cuba or abroad, following the appropriate procedure. Sociedad Panamericana de Finanzas S.A. (PANAFIN S.A.). Finance of locally produced non-traditional export items and their marketing; factoring and forfeiting of export operations; export-related interest rate and exchange risk coverage; debt refinancing operations; opening of bank accounts in their name in Cuban-based banks following the appropriate procedure; borrowing of funds to carry out authorized operations. FINAGRI S.A. Finance of goods, equipment and services import and export operations with the involvement of Cuban-based companies; finance operations through loans, credit facilities and other legal means; current operations of Cuban companies or joint ventures based in Cuba;

6 investment finance in relation to their objectives; investment fund operation; inter-organizational debt refinancing, forfeiting and related operations; national and international business operations debt collection; coverage and backing for the financial support given to international business operations of Cuban-based companies. Corporación Financiera Habana S.A. Granting of credits, loans and other forms of financing to companies operating in Cuba; prefinancing and financing of production and foreign trade activities; leasing, factoring, confirming and forfeiting operations; financial engineering, consultancy and staff training services; interest rate and exchange risk coverage; bank reference, guarantees and trusteeship; insurance agency services related to the finance granted by this institution. Financiera CIMEX, S.A. (FINCIMEX). Management of family remittances sent to Cuba from other countries; export finance; local shortterm purchase operations finance; leasing, factoring and forfeiting operations. Financiera para el turismo S.A. (FINATUR, S.A.). (A financial company for tourism) Finance of goods, equipment and service import and export operations of Cuban-based companies; financial engineering and business management services; implementation of export project promotion and development measures; consultancy services on economic and financial issues, accounting, statistics and automated systems; staff training; advisory on tariff, fiscal and budget preparation issues; promotion and implementation of factoring operations and advisory provided to Cuban companies in that subject matter; investment finance based on their corporate objective and investment fund operation for companies requesting this service in Cuba. ALFI S.A., Financiera para la Industria Alimenticia. (A financial company for the food industry) Granting of loans; factoring and forfeiting operations; granting of bank references or guarantees; borrowing of funds to conduct authorized operations and consultancy services on financial issues. INTERHOLDINGS S.A. Granting of loans for ordinary trade and investment operations funding; discounting of bills of exchange and promissory notes; factoring of receivables; leasing; and issuing of guarantees such as backing, letters of guarantee and non-confirmed letters of credit. Financiera Iberoamericana, S.A. Granting, management and promotion of credits, loans and other traditional forms of short, medium and longterm finance to those companies operating in Cuba; prefinancing and

7 financing of production, foreign trade and real estate projects and promotion; development and implementation of specific credit and management operations such as leasing, factoring, confirming and forfeiting; financial engineering services; consultancy services on economic, financial and commercial issues, accounting and statistics services, automated systems and electronic payment, as well as staff training in these subject matters; financial and management services including interest rate and exchange risk coverage, backing, guarantees and trusteeships. Compañía Financiera S.A. Finance provided to companies under the Ministry of the Sugar Industry (MINAZ); finance for the development of sugar cane by-products; granting of loans, backing or guarantees intended for brokerage operations; factoring and forfeiting. Financiera del Transporte (TRANSFIN). (A financial company for transport) Financing services through loans, credit facilities and other legal means; ordinary operations of Cuban companies; involvement in interorganizational debt refinancing operations; forfeiting and similar operations, provided that one of the Parties is a Cuban-capital enterprise or trading company; financial coverage and backing to support international business operations of Cuban-capital enterprises and trading companies; financial engineering and specific problem management services; consultancy on economic and financial issues; issuing, acceptance, backing, endorsement and discounting of bills of exchange and other negotiable documents, drawn or accepted by legal persons, provided that such documents are duly guaranteed; use of lent funds to conduct authorized operations; development and implementation of specific regime credit services such as leasing, factoring, confirming and forfeiting. INCREFIN S.A. This company has an automated report showing both a potential client's payment behavior in relation to previously incurred credit obligations and information on the outcome statement, general balance and cash flow statement based on a comparative series, initially of three years, as of the start of operations by InCreFin. The latter aims to reduce the risks by loss and the possibility of incurring expired portfolios; and achieve a faster decision making process to grant financing. INCREFIN provides a summary of the main aspects of a business until the date the report is produced; comparative information on incomes, expenditures, profits, cash holdings, accounts receivable, inventories, fixed assets, short and long term liabilities, paid dividends, capital, result of cash flow and main financial reasons.

8 Foreign Banks Representative Offices Havana International Bank Limited ING Barings Netherlands Caribbean Bank NV National Bank of Canada Banco Bilbao Vizcaya Argentaria Banco Sabadell Société Générale FRANSABANK SAL Banco Nacional de Comercio Exterior SNC (BANCOMEXT) Caja de Ahorros y Monte de Piedad de Madrid (CAJA MADRID) BNP Paribas EBN PROBANCA Representative Offices of Non-Banking Financial Institutions Caribbean Finance Investments (RGB) Commonwealth Development Corporation (CDC) Fincomex Limited LTD Novafin Financiere S.A. The national currency is the Cuban peso. Since 1993 possession and free circulation of foreign currencies are allowed. The official peso/dollar exchange rate is fixed by the BCC (1CP=1USD) and it is daily published in the newspaper. Source: