1 1 warsaw, 4 april 2014 general assembly cooperatives europe workshop 2 – influencing policies in...
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11Warsaw, 4 April 2014
General Assembly Cooperatives EuropeWorkshop 2 – Influencing policies in Europe
Warsaw, 4 April 2014
Financing cooperative projects
Juan Sergio LopezFedercasse – Federazione italiana delle Banche di Credito Cooperativo
22Warsaw, 4 April 2014
Since the beginning of the financial crisis credit to SMEs has become more difficult, in particular in countries that have experienced economic recession
As of today the credit crunch is adding to the difficult economic situation
Main issues
Source: Alleanza delle Cooperative Italiane – Rapporto Congiunturale 1/2014
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In general the credit tightening is becoming less stringent in Europe
Main issues
But the process of deleveraging in the banking sector means that bank credit for the real economy may not return to the past levels
Source: European Central Bank, Bank Lending Survey (January 2014)
Changes in credit standards for loans to entprs
Still scarce available data on financing of cooperatives
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To ease the present and future financing constraints it may be useful to point out possible areas in which specific policies can be explored1. Relations with banks
2. Financing instruments
3. Competences
4. Risk minimization
Policies and actions
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Which are the policies and actions that coops can undertake in order to improve their performance in these fields?1. Relations with banks: improve the ability
of banks to properly evaluate coops;• Better knowledge of bank staff but also
better tools; example of CRESO project: a specific scoring model for social coops
Policies and actions
Area Type of evaluation Weight Weight SCBalance sheet Statistical score 25% 10%Credit registry Statistical score 25% 25%Relation with the bank Statistical score 25% 30%Qualitative assessment Questionnaire 20% 30%Sector analisis Statistical score 5% 5%
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Which are the policies and actions that coops can undertake in order to overcome these issues?1. Relations with banks: increase relations
with coop and local banks
Policies and actions
Italy - Credit to cooperatives and non profit (market shares)
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2. Financing instruments: enlarge the range of financial intruments available to coop; examples:• Minibonds
• Demand deposit account (CTM consortium get more than 90% of its funding – more than 12 mil € - with this instrument; credit line from banks for liquidity risk)
• Crowd-funding (more than 500 platforms; estimeted 2.8 bill. raised)
Policies and actions
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3. Competences: team up with trade associations to get support and maximize the success of the project; example
Policies and actions
www.buonaimpresa.it
To bundle credit, guarantees, business support in a single packageParticularly suitable for start ups
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4. Taming the risk: private and public guarantee funds; examples:
• Central Guarantee Fund for SMEs
Policies and actions
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4. Taming the risk: private and public guarantee funds; example
• Mutual guarantee system
Policies and actions
