EACB banking business models

December 5, 2014 – The International Research Center on Cooperative Finance (IRCCF) was pleased to see the European Association of Co-operative Banks (EACB) applaud its launch of the Banking Business Models Monitor 2014 Europe at the European Parliament yesterday, December 4, 2014.

This world exclusive joint publication by the CEPS and the IRCCF (previously named International Observatory on Cooperatives) will be published on a yearly basis.

For the EACB, results published in 2014 prove once again that cooperative banks have provided a liquidity and stability anchor to the real economy throughout the financial crisis. In fact, the sector has performed relatively well compared to savings and commercial banks. The EACB also observed that European cooperative banks have seemingly suffered less during the financial crisis and the early stages of the economic crisis, to be more resilient to external shocks and to lend to the real economy.

IRCCF Director Rym Ayadi added: “Co-operative banks are a pillar of institutional diversity in the financial sector in Europe. The majority of these banks follow the retail and diversified banking business models. Generally, the retail diversified oriented co-operative banks weathered well the financial and economic crises due to their high capitalization levels, continued to lend to the real economy and overall remained largely resilient and robust. These banks are key to economic recovery in Europe”.

Meanwhile, the EACB General Manager Hervé Guider said: “Thanks to their key characteristics – extensive network, with a presence even in the most remote areas, stable relationships with their members and clients, expertise and long-term horizon – co-operative banks are now in the position to foster growth for the benefit of society”.