The ROE of co-operative banks are more stable than non cooperative banks (source: TIAS School for Business and Society)

TIAS School for Business and Society releases a report which examines key indicators of European co-operative banks in the context of rapidly changing and challenging external circumstances and also compares the performance of co-operative banks to that of all other banks in recent years.

Some interesting facts:

    • In turbulent market conditions, co-operative banks managed to enlarge their member base by 1.6 million to almost 80 million in 2015.
    • Since 2011, total assets and retail loans of all other banks contracted, whereas they grew at co-operative banks. This points to co-operative banks’ commitment to finance the real economy.
    • The ROE of co-operative banks exhibits a more stable pattern over a longer time period.

The TIAS Report concludes that co-operative banks engage in fewer and more stable business which secures stability in their performance. Their contribution is key to diversity in banking. The impact of (new) banking rules varies across banks with different ownership structures. However, the analysis shows that in recent years there is a tendency of convergence in many financial indicators. This may be due to the regulatory framework. Regulatory measures should not enforce convergence of business models and /nor the introduction of aspects of listed banks into well-capitalised co-operative banks with viable business models.

Dit nieuwsbericht is verschenen op woensdag, 29 maart 2017.