|
|
Two new studies, from the International Labour Organisation (ILO) and from the New Economic Foundation (NEF) were discussed for the first time. They highlight the power of financial co-operatives, their resilience in the crisis, the central role of their members, their stable credit offering to SMEs and households, and their growing client base.
“The banking crisis confirmed that financial co-operatives are stable and risk averse”, Prof Birchall, the author of the ILO report, declared. “Most came through without needing government bailouts, without ceasing to lend to individuals and businesses and with the admiration of a growing number of people disillusioned with ‘casino capitalism’.”
Simel Esim, Chief of the ILO’s Co-operative Branch, commented: “The economic contribution of financial co-operatives, although substantial, is often undervalued, and sometimes completely ignored, yet some of the largest banks in the world are co-operatives".
Hervé Guider, EACB General Manager emphasised: “Owned and controlled by their 56 million members, the 4,000 co-operative banks in Europe are crucial to finance in this challenging times local communities, SMEs and households with a long-term approach. However – if local values and importance of diversity are being rediscovered - the global nature of regulation strives towards uniformity. This is at the detriment of our banks. We need an enabling regulatory framework that takes into account our local structures”, he added, referring to the undergoing banking reforms.
The importance of co-operative banks and their role was also highlighted by the Vice-President of the European Parliament, Gianni Pittella, during his key note speech. “Co-operative banks have proven to be sound and reliable during the crisis and they have greatly contributed to the systemic stability of the eurozone. There is now a consensus on the need to preserve business model diversity in the European banking sector. The establishment of a genuine Banking Union should take into account this diversity in order to improve the resilience and stability of the banking industry."
The international academic community is key to increasing the awareness about the sector, achieving its full recognition and producing a mind-shift that translates diversity from an abstract concept to concrete policy and economic measures. In acknowledging this, the EACB has launched several initiatives to foster new thinking about the sector, including an award for young researchers. The winners will be rewarded during the next EACB Convention on co-operative banks (early 2014).