On February 10, 1925, one of the most well-known Basque banks, Crédito de la Unión Minera (Mining Union Credit)–an early Bilbao banking institution founded in the spring of 1901–suspended all payments as a prelude its collapse as a result of the financial downturn in the 1920s. Curiously, the full liquidation of its assets would drag on a further seventy-five years, culminating at the dawn of the new millennium.

Crédito de la Unión Minera was established in 1901 on the back of both significant growth in Bilbao itself (as a consequence of the strong mining export market) and the inflow of capital from former colonies following the fall of the Spanish empire. As its name indicated, this particular bank was associated closely to the mining sector on Bizkaia. Thereafter, the “Crédito” managed to retain its independence, in the wake of a series of fusions among other Bilbao banking interests, thanks to a successful aggressive commercial policy that saw its share price soar on the Bilbao stock market. This initial success was bolstered during World War I (1914-1918) with Spanish neutrality in the conflict benefiting the important Basque banking sector.

With the end of the war, however, and the economic downturn in the 1920s, those banks that had been especially speculative or adventurous were suddenly in trouble.  Specifically, as a result of over speculation, the Crédito was suffering from a lack of cash flow and on February 10, 1925, it suspended all payments prior to its official collapse.

Interestingly, it was still possible to cash in on the remaining assets of the bank right up until late 2001!

For more on this fascinating story, check out a great article by Eduardo J. Alonso Olea, “El Crédito de la Unión Minera: 1901-2002,” in Historia Contemporánea 24 (2002): 323-53. Available here.