Financial globalization and Latin American banking associations

Abstract

This study analyzes the implications of the current financial globalization process on the structure and dynamic of the class organization, specifically the banking associational system in Latin America. The participation of foreign financial on the boards of the associations is the principal criteria adopted for this study that includes nineteen associations in fourteen countries in addition to the Latin American Bank Federation (Felaban), with a total of 212 board-positions. The results obtained indicate an active presence of foreign banks in these banking associations, marked by the fact that they control nearly half the board positions. Eleven financial groups from Europe and the United States occupy nearly 1/3 of the positions, and simultaneously participate in banking associations in three or more countries, establishing what we call transassociative networks. The most significant examples are Citibank (Citigroup), and the Santander and Bilbao Vizcaya banks each of which participates in bank associations in seven countries. The study discusses the particularities and possible social-political implications of this process. Keywords: Financial globalization; bank associations, transassociative networks; power of banks