Sabadell Bank

History

At the end of the 19th century, the city of Sabadell was known as a bustling "factory city" with approximately 18,000 residents, 4,000 of whom were employed in the wool industry. Together with the nearby city of Terrassa, Sabadell accounted for 66% of Spain's wool production. Mechanization processes, introduced from 1875 onwards, led to significant productivity increases—doubling output in some steam-powered factories. This newfound efficiency enabled local industrialists to accumulate capital, leading some to begin informally lending money among themselves.

Over time, these industrialists specialized in financial operations, but no institution offered the long-term credit necessary for purchasing raw materials, such as wool imported from Argentina or Australia. This unmet need spurred the idea of creating a bank tailored to the needs of local manufacturers. The goal was to establish an institution that could facilitate payments at the local level, provide short-term credit, and support investments in international raw materials.

Although Sabadell already had a savings institution (Caixa d'Estalvis de Sabadell), founded in 1859, it focused exclusively on promoting small-scale savings and could not handle the complex financial operations required by industrialists.

On December 31, 1881, a group of 127 entrepreneurs and merchants from Sabadell, led by the Gremi de Fabricants de Sabadell (Manufacturers' Guild), founded Banco Sabadell. Its purpose was to finance local industry and supply raw materials—such as wool and coal—on more favorable terms. The bank's initial share capital was set at 10 million pesetas, contributed by 127 shareholders, the majority from Sabadell, with a handful from Barcelona and one from Barberà del Vallès.

The bank's first office was located in the ground floor of the guild's building. In addition to traditional banking, Banco Sabadell initially engaged in other business activities, including buying and selling raw materials, importing machinery, and establishing electrical installations. This phase lasted until 1907, when the bank decided to divest its non-banking activities and focus solely on commercial banking operations.