Download presentation
Presentation is loading. Please wait.
1
Landscape Cooperative Financial Institutions
Gerard van Empel Washington DC, April 2007
2
Key Figures Rabobank Group
27 27 27 27 27 27 28 28 29 28 27 28 28 29 29 28 28 29 29 28 30 29 29 29
3
Key figures Rabobank Group (1)
(in EUR billions) Total Assets Reserves 29,3 26,3 18,1 Private Sector Lending Funds Entrusted 215,9 186,5 192,1 Net Profit 2,3 2,1 1,5
4
Key figures Rabobank Group (2)
(in EUR billions) Member banks Offices: - branches 1,214 1,249 1,299 - contact points 3,091 3,031 2,965 Cash dispensing machines 3,139 3,116 3,062 Foreign offices Employees - Total Employees 56,209 50,998 56,324
5
Consultation and decision structure
local bank local bank local bank local bank local bank local bank local bank local bank local bank Regional meeting Regional meeting Regional meeting local bank local bank local bank local bank local bank local bank local bank local bank local bank Right to vote Central Delegate Meeting Rabobank Nederland General Meeting 20 20 20 20 20 20 21 21 22 21 20 20 20 21 21 20 20 21 21 20 22 21 21 21
6
Observations Cooperative Banking
Traditional coop banks in many countries become marginalized Global players are entering emerging markets an developing countries Many coop banks lack scale and adequate capitalization structure Need to think more “out of the box” including donors, governments etc Cooperative legislation too restrictive in many cases
7
Strategic Issues World-wide pure agricultural retail banks are not sustainable Rural banks also need good urban presence Financial sector is consolidating rapidly. Real retail bank also coop. bank needs retail market share of 10% plus Capitalization model needs to be flexible and governance model needs to reflect that
8
Our preferred approach for Coop. Banks
Strategy: Client driven, partly client owned, full retail bank with a rural orientation with cooperative characteristics Based on shares Internal trading mechanism Voting system proportional not necessary linear One tier operational structure, possibly multi tier governance structure
9
Hubs and Spoke Distribution Network
Branch Sub Branche Branches Head Office Sub branches offering basic financial products Sub Branche
10
Example Capital Structure
Clients and employees are invited to be shareholders Minimum number of shares, for instance 10, maximum number of shares 1000 Semi-linear voting system, for example 10 shares one vote, 1000 shares votes Development of internal share trading mechanism
11
Example Corporate Governance Structure
Local Level Share Holders Branch assembly Sub Branch Central Level General assembly Non Executive Board Branch …… …… …… ….. 3 5 Election Information Exchange
12
Main challenges for the next 5 years
Transform coop financial institutions into full fledges retail banks based on cooperative characteristics Adequate capitalization and flexibility using other capital instruments like member certificates etc. Separate operations from governance structure Operations based on efficiency Governance based on bottom-up democracy control
13
What are we doing in developing countries
Provide technology and expertise Investment into retail banks with rural orientation, currently: NMB, Tanzania ZNCB, Zambia Banco Terra, Mozambique URCB, China
Similar presentations
