The application of the rules on transactions with related parties, which I mentioned earlier, will also help to guarantee the independence of the banks against undue interference and influence. The cooperative banks, in recent years, have experienced a healthy process of membership renewal. The increase in widespread share ownership and the greater presence of institutional investors have strengthened their capital.
These changes now require a review of the cooperatives’ governance arrangements, which were originally conceived for small, local banks and are not suited to today’s large institutions with a substantial national presence and a broad membership base or stock exchange listing.