Four recommendations for European cooperative banks
November 3, 2015 | 1 min read
Cooperative banks should not only ensure the influence of their members at the legal and judicial levels, but should also ensure that they are visibly represented at various levels of the governance structure. Endowed Professor Hans Groeneveld makes this recommendation in the article "Governance of European Cooperative Banks: Overview, Issues, and Recommendations."
Distinguished Professor Hans Groeneveld distilled four recommendations for future cooperative governance aimed at helping cooperative banks maintain or strengthen their cooperative nature and profile. These suggestions are based on his personal interpretation of the recent events and developments in banking regulation.
His article discusses the governance of cooperative banks in Europe, the largest category within the family of banking cooperatives worldwide. The insights and considerations in this article also apply to other banking cooperatives, such as credit unions, building societies, and cooperative banks set up by other cooperatives.
It has been empirically proven in recent years that the cooperative banking sector in Europe contributes to the diversity of the financial system. Cooperative banking groups are considered "different animals in the zoo of the European banking system." This is largely due to their specific member-based governance.
Governance of European Cooperative Banks: Overview, Issues and Recommendations, Hans Groeneveld (2015)