The European Association of Co-operative Banks (EACB) has been the voice of Europe’s co-operative banks since 1970. It represents, promotes and defends the common interests of its 28 member institutions and of co-operative banks in general. Co-operative banks form decentralised networks which are subject to banking as well as co-operative legislation. With 4,200 locally operating banks and 63,000 outlets, co-operative banks are widely represented throughout the enlarged European Union, playing a major role in the financial and economic system. In their long tradition, they have served 160 million customers, mainly consumers, SMEs and communities. Europe’s co-operative banks represent 50 million members and 750,000 employees and have an average market share of about 20%. In some countries, such as Austria, Germany, Finland, France, Italy and the Netherlands, the market share is well above this figure, ranging from 30% to 50%.

Mission Statement
The European Association of Co-operative Bank is committed to defending and promoting co-operative values and the interests of its members within a competitive environment that allows co-operative banks to best serve their members and clients. To this end, the Brussels-based organisation provides information and advice, and contributes to the dialogue between European institutions and stakeholders.

Our Role
Working with Decision-Makers
The EACB works to promote a legislative and regulatory environment in Europe that fits with the co-operative business model; it highlights the concerns of its members in order to enhance the diversity and the plurality of the European banking industry for the benefit of Europe’s citizens and small businesses.

Promoting Co-operative Values
The organisation supports and promotes the values of the co-operative movement in European and international institutions – central to these values are the principle of democracy – with the principle of “one person-one vote” at its core; a strong commitment to social values; and links with 59,000 bank branches – as an alternative to “shareholder value” and financial markets-oriented institutions.

Commitment
We are fully committed to defending and promoting the unique qualities and values of the co-operative movement on behalf of our members in the European institutions, and the European Central Bank. This commitment makes us the best spokesman for the co-operative movement and the most effective way for European co-operative banks to be heard by policy makers and regulators.

Delivering Value-Added Services
The EACB’s workshops, seminars, publications and information allow its members and other co-operative organisations to increase their awareness and knowledge of European issues, keep them up to date with legislative and regulatory developments and offer a platform to develop co-operation between our members.

Who are
Co-operative Banks?
PRIVATE RETAIL BANKS OWNED BY THEIR CUSTOMERS/MEMBERS: as owners, the banks’ members and customers have a direct say in the business. As a result, the primary aim of co-operative banks is to provide the best possible products and services to their customers, rather than to make the most amount of money out of them. Maximising profits is not a goal per se.

Networks deeply rooted in the local economy: co-operative banks have a widespread presence spread throughout the EU. With more than 60.000 outlets, the co-operative movement reaches even the remotest areas of Europe. This presence allows for a close and unique relationship with customers.

Modern banks upholding the traditions of the founding fathers of the co-operative movement, Raiffeisen and Schulze-Delitzsch. Co-operative banks comply with the key principle of one person-one vote in accordance with the European Co-operative Statute, at the same time complying fully with banking and co-operative legislation in their own countries.

The Co-operative Banks Way
Sound business practices and robust structures: Co-operative banks generally have a high level of capitalisation and stable incomes from retail business. Across Europe, they exceed the minimum legal capital ratio requirement of 8%, with an average ratio of about 9%. This is reflected in very good credit ratings, which range between AA- and AAA for the largest co-operative banking groups in Western Europe.

Efficiency and sound governance: Members/customers are fully involved in the decision-making process of co-operative banks. Members control the co-operative and exert checks and balances at each level of the business, allowing organisations to minimise risk, identify creditworthiness and promptly respond to customers needs.

Citizens, Households and SMEs at the heart of the business: co-operative banks are the main lenders to SMEs. In Italy, France, Germany and the Netherlands, co-operative banks’ market share in loans ranges between 25% and 40%. In those same markets SMEs represent between 20% and 50% of the total client portfolio of co-operative banks.

Job creators: with their wide-ranging networks, co-operative banks are often the main employers and taxpayers in their regions. Co-operative banks employ 750.000 people in Europe, and in 2007 they created 13.000 jobs and devoted an average of 4% of the payroll to educational programmes.

Leading the way in the field of social responsibility: As a result of their philosophy of fostering economic initiative and an inclusive society, co-operative banks participate in a range of schemes, such as microfinance and financial education of groups like the long-time unemployed. They also have a long tradition of fostering the development of their local communities through cultural sponsorship initiatives, responsible citizenship and foundation work. Co-operative banks are also among the market leaders for Socially Responsible Investment (SRI) products such as funds and savings accounts. Green finance is increasingly gaining importance, and a variety of investment solutions allow the customers of co-operative banks to contribute to the preservation of the environment.