Key characteristics of cooperative banking

Cooperative banks are a major pillar of diversity in the European banking sector. They are banks "owned and controlled by people who are also clients of the bank".^[4] As such, they are geared toward maximising member value on the long-run. More specifically, they are characterised by their member ownership model; member benefits/surplus through long-term relationship; 'One person - One vote' governance with a bottom-up approach; limited participation in profit; commitment to social values and ESG; and proximity to customers' regional presence in terms of decision-making and financing.

The cooperative model finds its origins in the cooperative movement first conceived by Friedrich Wilhelm Raiffeisen and Schulze-Delitzsch in the first half of the nineteenth century. The movement was grounded on the principles of self-help and equality to secure financial access to less privileged groups of society, especially from rural areas.

Cooperative banks today deliver value across the four categories as regards their specific business model, the diversity and balance they bring to financial markets, long-term relationship and trust with members and customers, and their wider social impact. They contribute widely to stability thanks to their anti-cyclical behaviour, and are drivers of local and social growth for consumers, SMEs and communities.

Facts & figures

• Cooperative banks provide services to 227 million customers, mainly consumers, Small and medium-sized enterprises (SMEs) and communities.
• Cooperative banks are mutual and private banks, owned by their 89 million members.
• Cooperative banks share common values and foster local growth and entrepreneurship through their 2.700 regional and local banks and 40.000 branches.
• Cooperative banks employ 720.000 people across Europe.
• Cooperative banks manage more than €9.4 trillion in banking assets.
• Cooperative banks safeguard €5 trillion in deposits.

The information above is the latest data available compiled by EACB and Tilburg University for the year 2021. The EACB offers a comprehensive set of policy resources for cooperative banking worldwide. These resources as well as key figures and data on the cooperative banking sector are available on the EACB website (www.eacb.coop).

History

Following an initiative launched by Johannes Teichert to create a representative body for credit cooperatives of 6 EU-member states, a first meeting with the European Commission was held in December 1969. The gathering led shortly after to the foundation of the Association of Cooperative Savings and Credit Institutions of the E.E.C on 1 October 1970. The first statues of the Association were signed at the end of 1971 by the founding members:

• Caisse Centrale des Associations Agricoles Luxembourgeoises
• Centrale Raiffeisenkas, Leuven Belgium
• Confédération Nationale du Crédit Mutuel, Paris
• Coöperatieve Centrale Boerenleenbank, Eindhoven
• Coöperatieve Centrale Raiffeisen-Bank, Utrecht
• Deutsche Genossenschaftskasse, Frankfurt
• Deutscher Raiffeisenverband, Bonn
• Ente Nazionale Delle Casse Rurale Agrari ed Ente Ausiliari, Rome
• Fédération Centrale du Crédit Agricole Mutuel, Paris
• Fédération Nationale du Crédit Agricole, Paris
• Federazione Italiana dei Consorzi Agrari, Rome
• Union du Crédit Coopératif, Paris

Structure

The European non-profit association is headed by a President and regulated by the Board and the Executive Committee. The Chief Executive Officer, Ms. Nina Schindler, leads the Secretariat based in Brussels.

The Executive Committee is composed of 39 Appointed Members, who endorse recommendations put forward by the Working Groups. They meet three times a year.

The activities of the EACB are articulated around Working Groups and Taskforces,^[5] covering topics from digital euro to customer policy, sustainable finance and anti-money laundering.

Activities of the Working Groups

The EACB currently has set up 14 Working Groups to advocate on a wide range of policy issues in the EU regulatory discussion. These include:

• Accounting & Audit
• Anti-Money Laundering & Financial Sanctions
• Banking Regulation
• Cooperative ID Forum
• Consumer Policy
• Corporate Governance and Company Law
• Digital euro
• Digitalisation and Use of Data
• Financial Markets
• Green and Sustainable Finance
• Payment Systems
• Recovery, Resolution and Deposit Protection
• Sustainability Reporting and Audit
• Taxation

Presidents

1970 – 1977: President Van Campen, Centrale Coöperatieve Boerenleenbank

1977 – 1981: President Braun, Crédit Mutuel

1982 – 1986: President Lardinois, Rabobank Nederland

1986 – 1989: President Schramm, BVR, Germany

1989 – 1995: President Barsalou, Crédit Agricole, Paris

1995 – 1999: President Grüger, BVR Germany

1999 – 2002: President Meijer, Rabobank Nederland

2002 – 2006: President Pflimlin, Crédit Mutuel Paris

2006 – 2008: President Pleister, BVR, Germany

2008 – 2012: President Moerland, Rabobank Nederland

2012 – 2016: President Talgorn, Crédit Agricole S.A.

2016 – 2020: President Hofmann, BVR Germany

Since 2020: President Marttin^[11], Rabobank Nederland

Managing Directors

1970 – 1982: Johannes Teichert

1982 – 1996: Guido Ravoet

1996 – 2001: Johann von Süsskind

2001 – 2021: Hervé Guider

Since 2021: Nina Schindler

Members