When you place your savings or apply for loans, you can go to financial institutions other than banks. Among the best known options available in Peru are the financial and municipal savings banks. These last two, although they may seem very similar, have some differences that you should know. In this article we show you what is the difference between financial and municipal cash.

Financial companies (or financial companies) and municipal savings banks (or municipal savings banks) have very similar operations. In fact, from the customer’s point of view there is no difference between one and the other. This is because the differences they present are in areas that have no influence on the way they provide their services. These areas are:



finance credit

The owners of a financial company are the people or organizations that own their respective actions. The actions determine the weight of the vote in decision making: the greater the number of shares, the greater the weight of the vote.

Instead, the owners of the savings banks are the provincial municipalities, although they can count on private shareholders. By law, the participation of said shareholders cannot exceed 49% of the shares of the fund. The decision making is carried out by a board of directors appointed by the municipal authorities.


Social objectives

financial objectives

A municipal savings bank aims to underpin the development of the economy of the corresponding municipality. For its part, the objective of financial companies is to generate profits in currency to their shareholders.

Therefore, the utility of municipal funds is distributed in 50% for members and 50% for the municipality. The part corresponding to the municipality is generally granted in the form of financing to works of the municipality. In counterpart, 100% of the profits produced by financial companies are distributed among its shareholders. The high-interest rates of credit cards are world-famous. Yes, they are high rates.