Banco de Venezuela: From Humble Beginnings to Economic Growth

Banco de Venezuela was founded in 1940 by a group of Venezuelan businessmen, with the goal of providing financial services to the country's growing economy.

The bank's early success was largely due to its innovative approach to banking, which included the introduction of new financial products and services tailored to the needs of Venezuelan businesses and individuals.

In the 1950s, Banco de Venezuela expanded its operations to several major cities across Venezuela, becoming one of the country's largest and most respected banks.

By the 1960s, the bank had established itself as a leader in the Venezuelan financial sector, with a reputation for stability and reliability that would serve it well in the years to come.

Banco de Venezuela was founded in 1883 as Banco Comercial and later changed its name to Banco de Venezuela in 1890.

The bank initially operated as a loan and taxation financial institution for the Venezuelan government, providing services to the country.

By 1920, the bank had established 10 branches in the country and was one of the six financial institutions authorized to issue banknotes until the creation of the Banco Central de Venezuela in 1940.

The bank continued to expand, with 100 branches nationwide by 1976, and introduced 24-hour customer service, credit cards, and new point of sales terminals in 1978.

In 1977 and 1979, the bank opened branches in New York and Curaçao, respectively, and founded a subsidiary, Banco de Venezuela International, two years later to offer better services outside the country.

The 19th century was a pivotal time for the Banco de Venezuela. It was founded in 1883 as Banco Comercial and later changed its name to Banco de Venezuela on September 2, 1890.

The bank's primary function was to provide loans to the government and serve as a fiscal collector for the state. This role earned it a special exemption from paying taxes or making any contributions to the national treasury, as granted by a national law in 1920.

By 1920, the bank had established branches in over 10 cities across the country's interior. This expansion was a significant milestone in the bank's growth and development.

The lack of a central bank led to the Banco de Venezuela being selected, along with five other institutions, to issue paper currency, known as the bolivar, until the creation of the Banco Central de Venezuela in 1940.

The Banco de Venezuela's expansion in the 20th century was quite remarkable. In 1976, it opened its 100th office, and a year later, it established a branch in New York.

The bank's growth continued, with the introduction of a 24-hour customer service in 1978, along with credit cards and point-of-sale services. This was just the beginning of its international expansion.

By 1981, the bank had founded the Banco de Venezuela Internacional to offer more services abroad. Two years later, it inaugurated a new headquarters in Caracas' city center.

However, the bank's rapid growth came to an abrupt halt in 1994 due to the country's banking crisis. The government intervened and provided a $294 million bailout to the bank.

In 1996, the bank was put up for auction, and the Spanish group Santander acquired over 93% of its shares. This marked a significant shift in the bank's ownership and direction.

The bank continued to grow, and in 2000, it acquired a majority stake in the Banco Caracas. The two banks eventually merged in 2002, becoming the country's largest bank.

The state's involvement in Banco de Venezuela's history has been significant. In 1994, the bank was one of the ten banks bailed out by the Venezuelan government during the banking crisis, with the government taking a majority stake for an estimated $294m.

The government's stake in the bank was short-lived, as it was reprivatized in 1996 with Grupo Santander purchasing 93.38% of its shares for around $350m. However, the government's interest in the bank was rekindled in 2008 when President Hugo Chávez announced that the bank would be nationalized.

This decision was finalized in 2009 when the government purchased Grupo Santander's 96% stake in the bank for $1.05 billion. As a result, the bank became 50% managed by the government, with the remaining 50% still held by Grupo Santander.

Under government management, the bank experienced significant growth, with over one million new clients added between 2009 and 2011. The bank also saw a 275.4% increase in home acquisition credits during the same period.

Here's a brief timeline of the bank's nationalization:

The Banco de Venezuela has reached a major milestone - 15 years since its nationalization. El Banco de Venezuela (BDV) has become the leading bank in the country, advancing in its platform optimization and digitalization.

The bank has demonstrated its commitment to innovation and client trust, serving over 17 million clients. This is a testament to its dedication to providing quality services.

In the first half of 2024, the BDV granted a record number of credits, totaling 459,729 and reaching USD 614 million in its credit portfolio. This represents 30% of the national financial system's market share, with a low default rate of 0.69%.

The bank has concentrated 71% of its financial support in the agro-productive and commercial sectors. This aligns with the policies of President Nicolás Maduro and Vice President Delcy Rodríguez.

In June, the BDV provided 93,670 credits through programs like Credijoven and Credimujer, supporting key sectors. This is a significant achievement in the bank's efforts to promote economic growth.