First cooperative bank conference - McCreevy true to “one share, one vote” principle for shareholders

Brussels, 02/12/2005 (Agence Europe) - On 1 December in Brussels, the European Association of Co-operative Banks (EACB) held the first conference on cooperative banks in Europe. Pervenche Berès, Chair of the EP Committee on Economic and Monetary Affairs, stressed during the opening “the need to support cooperative banking networks which are alternatives to the existing networks”.

The conference was organised into three round tables for discussion. The first, on cooperative values and local development, aimed to show the ability of cooperative banks to contribute to the stability of finance systems and the economy in general due to their specific nature: - proximity, customer services, democracy and also their competitive situation. The second round table tackled the principles of governance in cooperative banks. Participants stressed that transparency in the decision-making processes and participation of bank stakeholders in daily management at local level are an alternative to the model of limited liability company governance, and that, in cooperative banks, the principles of governance are based on the “person” and not on the “shareholder”, which tends to strengthen customer confidence. The third round table discussed the role of cooperative banks within an enlarged Europe and the speakers showed that these banks contribute to achieving the Lisbon goals in terms of competitiveness and social cohesion.

Mr Pflimlin, President of the Association, stressed in this context that the cooperative banks are fighting against financial exclusion ensuring that all sectors of the population have access to the financial services without discrimination, while Mr Pleister noted that the “cooperative banks are living proof that the private initiative works”, by “helping people to help themselves”. Cooperative banks hope the new cooperative status will be applied in 2006 providing opportunities in crossborder cooperation. They call on the regulatory bodies of the new Member States to recognise the cooperative form of banking as a legal form of enterprise.