Brussels, July 17 – The European Association of Cooperative Banks (EACB) proudly hosted the Apropos Coop Banking webinar on “Banking, Crises and Cooperative Banks”. Based on their insights from the book “Of Banks and Crises”* experts and industry leaders discussed the impacts of financial crises, regulatory challenges, and the critical role of cooperative banks in the evolving economic environment.
Held on the margins of the International Cooperatives Day, the event featured Jacques Beyssade, Secretary General of Groupe BPCE and co-author of the book with Cristina Peicuti. Beyssade highlighted the resilience of cooperative banks, stating,
“In France, cooperative banks have been present for over two centuries and now represent two-thirds of the banking market. This is because there is no disconnect between the interest of shareholders and the interest of customers. This focus on customers and long-term value creation makes it a model that works, and thus, lasts. In regulation, this means that fit-for-purpose regulation must acknowledge cooperative banks as ‘fit for crises’”.
Beyssade was joined by panellists Edoardo Rulli, Policy Officer at the European Commission, Małgorzata Iwanicz-Drozdowska, Professor at SGH Warsaw School of Economics and CEO of Krajowy Związek Banków Spółdzielczych (KZBS), and David Murano, Deputy CEO and CRO of Caja de Ingenieros. The discussion was moderated by Mike Velthaak, Senior Advisor of the Management Board of Rabobank. The panellists examined how financial crises like the 2008 Great Financial Crisis and the COVID-19 pandemic disproportionately affect the poor and lower middle class, stressing the need for inclusive financial strategies.
The panel also reviewed the regulatory response to the 2008 crisis, which prompted the creation of the Banking Union, the Single Rulebook, SSM supervision, the SRB’s recovery and resolution framework, noting the challenges banks, and specifically smaller banks, face in meeting regulatory requirements. Consensus was found on the need to avoid a one-size fits all approach and ensure proportionality.
Looking ahead, the green transition was identified as a key contemporary challenge. Furthermore, Nina Schindler, CEO of the EACB, highlighted concerns about overregulation, stating,
“Overregulation, not only in the banking field, is hampering Europe’s ability to stay competitive with the US and Asia. It was reassuring to hear that the Commission’s intentions for the next mandate involve focusing on Europe’s competitiveness and its openness to reflect on the reach of regulation. As cooperative banks, we welcome the awareness of the need to prioritise proportionality and simplified requirements, especially for smaller and less complex banks. Taking this path would be fully in line with EACB’s recommendations for a ‘less is more’ regulatory approach.”
*‘Of Banks and Crises’ by Cristina Peicuti and Jacques Beyssade, published May 2024. https://doi.org/10.1142/q0461