Role of cooperative and savings banks in territorial cohesion

EESC opinion: Role of cooperative and savings banks in territorial cohesion

Key points:



  • considers it vital to preserve the "biodiversity" of the financial system, without this meaning the arbitrary application of rules;
  • applauds the consideration the European Commission has given to the introduction of calibrated  financial regulation frameworks to consider the specificities of cooperative and savings banks that avoid the undesirable effects of uniform application of prudential rules and possibly an overload of administrative burdens;
  • reminds that the main problem remains the adequate application of the proportionality principle in the new banking rules (especially regarding the Capital Requirements Directive – CRD IV and the Capital Requirements Regulation - CRR);
  • is of the opinion that the strictest requirements should apply to global banks, stringent requirements should apply to pan-European banks (of a systemic nature in Europe) and more flexible requirements should apply to national and local banks;
  • has always been committed to a level playing field, and therefore recommends the use of objective parameters that justify a specific regulation for each business model. ( financial and economic performance, contribution to the real economy, risk management, and governance);
  • proposes that the financial authorities should offer incentives to those actors who best comply with these conditions, and calls for stronger ethical standards and codes of good governance for all kind of banks, as these are vital for restoring lost confidence.