The EACB (European Association of Co-operative Banks) has published today a new report entitled “Corporate Governance in Co-operative Banks: Key Features”. The report illustrates how corporate governance works in co-operative banks. It also shows that governance, based on the principle “one member, one vote” is at the heart of their identity and values. The report lists and describes a number of co-operative specificities in important aspects of governance including, among others: experience and expertise, independence, mandates, roles of board and management, recovery and resolution. It concludes that when it comes to governance, regulators and supervisors should take into account the dual nature of co-operative banks as banks and as co-operatives.
“Governance is what differentiates our banks, it is core to our performance, business, organization and structures. The co-operative governance way should be considered for its own unique merits and not as an “atypical” model.– commented Herve’ Guider, EACB General Manager-” “For this reason – he continued – while we fully share the policy makers’ objectives to enhance governance practices in banking, we warn that i) “good governance” is not a tick boxing exercise, but requires a comprehensive approach and corporate culture is key to responsible and ethical behaviors; ii) governance principles must be compatible with all baking models and applied in proportion to challenges and risks.”
For the full study "Corporate Governance in Co-operative Banks - Key Features", please click here.
For the press release please download the pdf.