The Financial Crisis from the Perspective of Co-operative Banks – Answers Given by Dr. Alexander Henk
Co-operative banks have weathered the crisis fairly well so far. Do you consider these financial institutions to be the actual winners in this crisis?
In fact, this seems to be true at present, but it is certainly too early to give any overly optimistic assessment. The financial crisis is not yet over and – do not forget – we are probably in for a pretty hefty recession. Thus, we have to cope with an extremely difficult market environment. And everybody, including the co-operative banks, will have to take the right measures to master the numerous challenges.
In your opinion, which actions are needed in the co-operative sector?
I believe that through the consolidation process launched, the co-operative sector is already on the right track. The merger of the central institutions WGZ and DZ-Bank offers them the great opportunity of exploiting efficiency potentials in a targeted way and of stringently positioning them for mastering future challenges. You must bear in mind that the co-operatives are already well-organised as a group today. Individual issues, such as joint capital management within the sector, still offer room for further improvement from an external perspective.
Where do you see the biggest opportunities for the co-operative sector?
The current market environment has turned the banking world upside down for the time being. For many customers, for example, safety is now much more important than profits. Those banks who accordingly align their product range stand the best chance to derive benefits from this situation. Additionally, the customer relations of some other banks have been impaired significantly. Through their local presence, Volksbank and Raiffeisen banks can utilise this opportunity for attracting new customers and further raising the loyalty of existing customers.
