Banco Hipotecario Structure and Business Model Explained

Banco Hipotecario is a leading financial institution in Argentina, with a rich history dating back to 1927.

The bank was founded by a group of Argentine entrepreneurs who aimed to provide affordable housing loans to the country's growing middle class.

Its headquarters is located in Buenos Aires, the capital and largest city of Argentina.

Banco Hipotecario has a strong presence in the country, with a network of branches and ATMs that cater to the needs of its clients.

Banco Hipotecario, a type of bank that specializes in mortgage loans, has several key functions, including receiving deposits of mortgage loan participations and special accounts.

These banks can also obtain credits from abroad, known as interbank loans, which allows them to act as intermediaries for foreign and national currency credits.

In practice, most banks have diversified their activities or been merged with commercial banks, becoming part of a larger banking group.

Some notable Banco Hipotecario institutions include the Banco Hipotecario of Argentina, Banco Hipotecario of Chile, and Banco Hipotecario of El Salvador.

These banks are not only involved in mortgage lending but also offer other financial services.

Here are some examples of Banco Hipotecario institutions around the world:

The ownership and structure of Banco Hipotecario have undergone significant changes over the years. The bank was on the brink of collapse in 2002 due to the economic crisis.

The state took control of the bank in 2005 when it acquired a majority stake, followed by the group IRSA holding 21% of the shares. The president, Cristina Fernández de Kirchner, increased the state's stake to 79.22% in 2008.

The Banco Central de la República Argentina acquired 2.23% of the shares in 2012, while the province of Buenos Aires, under the governor Daniel Scioli, purchased an 11.79% stake that same year.

Public banks emerged to provide financing and liquidity to individuals and institutions in exchange for a real guarantee, usually the property itself that is mortgaged. This type of financing is known as a mortgage.

Banks are specialized in promoting the purchase and construction of real estate, unlike commercial or private banks that focus on consumption or other financial products.

Their main objectives include providing mortgage loans secured by a mortgage, and building homes and other real estate properties.

The Banco Hipotecario Nacional had a few different homes over the years. Its first building was designed by Carlos Altgelt in 1888 and took a year to complete, finishing in 1894 with two different facades: one borbónico and one gótica.

The bank's original building was insufficient by the 1910s, so it acquired a nearby plot in 1913 and built an annex designed by Arturo Prins, which was completed in 1919 but took another year to finish.

By 1932, the bank had expanded to the Palace Hotel, another adjacent building. This growth was largely driven by the increasing role of the state in the economy, particularly from the 1940s onwards.

In 1942, the bank moved to a new location as part of a law that involved an exchange of buildings. The bank took over the site of the first Congreso Nacional building, which was declared a Monumento Histórico Nacional and had previously housed the Archivo General de la Nación.

A unique perspective: Hibernia Bank Building (San Francisco)

The bank's new building was designed by Raúl Fitte and Héctor Morelli, but the design was modified in 1949 by Héctor Fariña Rice. The construction process took over 20 years to complete, with the final stage finishing in 1966.

The bank's ownership changed again in 1997, when it was privatized and its grand building was transferred to the AFIP. The bank then moved to a brutalist building designed by Clorindo Testa, originally built for the Banco de Londres y América del Sur in 1959.

For more insights, see: Mechanics' Bank and Trust Company Building

The ownership structure of the bank has undergone significant changes over the years. In 2002, the bank was on the verge of bankruptcy due to the economic crisis.

The government of Néstor Kirchner took control of the bank in 2005 by purchasing part of the Banco Hipotecario. This move made the State Nacional the majority shareholder.

The president Cristina Fernández de Kirchner further increased the state's stake in the bank in 2008 by buying more shares, bringing the state's ownership to 79.22%.

The Banco Central de la República Argentina (BCRA) acquired a 2.23% stake in the bank in 2012, while the province of Buenos Aires also acquired an 11.79% stake that same year.

The remaining 29.99% of the shares are divided between the group IRSA and floating shares on the Mercado de Valores.

Banco Hipotecario operates through a network of over 1,000 branches and 3,000 ATMs across Argentina. This extensive network ensures that customers have easy access to banking services.

The bank offers a wide range of financial products, including mortgage loans, personal loans, and credit cards. These products cater to the diverse needs of its customers.

Banco Hipotecario provides online banking services, allowing customers to manage their accounts, pay bills, and transfer funds remotely. This service is available 24/7, making it convenient for customers.

The bank's customer service team is available to assist customers with any queries or concerns. They can be reached through phone, email, or in-person at a bank branch.

Banco Hipotecario has implemented various security measures to protect its customers' sensitive information. This includes encryption technology and secure login protocols.

Related reading: Banks ATM Network and Customer Services

Banco Hipotecario offers a range of specific services to its clients. These services are designed to cater to the unique needs of individuals and businesses looking for financial assistance.

Banco Hipotecario receives deposits of mortgage participation loans and special accounts. This allows them to provide a stable source of funds for mortgage lending.

Banco Hipotecario can obtain credits from abroad, known as interbank loans. This enables them to act as intermediaries for both domestic and foreign credit.

Banco Hipotecario can issue mortgage bonds or certificates. This provides an alternative investment option for clients.

Banco Hipotecario is equipped to make temporary investments in liquid assets. This helps to manage their finances and reduce risk.

Some of the key services offered by Banco Hipotecario include:

Banco Hipotecario evaluated several options before choosing an Intralinks Virtual Data Room (VDR) to securely distribute and manage information with over 60 people.

The Intralinks platform allowed hundreds of documents to be shared instantly, which was crucial for piecing together a complex deal.

Banco Hipotecario's Capital Markets team quickly became familiar with the platform and learned how to upload thousands of pages of documents onto the VDR in a well-organized manner.

The team used robust permissioning features to manage access rights for each document and participant, ensuring the highest level of security.

The project's scope and objective are centered around a medium-term loan of up to US$5 million to Banco Hipotecario.

Banco Hipotecario, the leading first-tier state-owned bank in El Salvador, will use the loan to finance the expansion of its portfolio of loans to small and medium-sized enterprises (SMEs).

The loan will be provided to eligible clients, following criteria established by the Inter-American Investment Corporation (IIC).

The loan proceeds will be used to offer medium-term loans to SMEs, focusing on meeting their financing needs in various economic sectors.

Curious to learn more? Check out: Armed Forces and Police Savings & Loan Association, Inc.

Banco Hipotecario's Capital Markets team used the Intralinks platform to securely distribute and manage information with over 60 people.

The team learned how to upload dozens of thousand-page documents onto the Virtual Data Room (VDR) quickly and in a well-organized manner, with the highest level of security possible.

Intralinks Designer helped the team easily configure the Virtual Data Room, allowing them to upload, classify, and manage information easily.

The team used robust permissioning features to manage access rights not only for each document, but for each participant.

Daniel Merino, Capital Markets Manager at Banco Hipotecario, praised the Intralinks platform, saying it helped them stay focused on the strategy while managing information.

Banco Hipotecario was able to access Intralinks' platform capabilities in just hours, allowing them to collaborate with legal and financial advisors.

This collaboration resulted in a significant time savings of at least 75% compared to traditional methods.

The platform's security features gave the team peace of mind, as they were unable to break the security during vulnerability testing with third parties.

Intralinks' reporting capabilities helped the team gauge the interest of potential investors by tracking who accessed the data, for how long, and how many times.

The platform's familiarity among investors meant that Banco Hipotecario spent very little time learning how to use it, allowing for immediate outreach to the investment community.

The bond issue was highly successful, with the Capital Markets team able to easily close the deal and secure financing after the window of opportunity opened.