In the current economic and geopolitical environment, volatility seems to have become the only constant. Even as international alliances undergo deep transformations and the digital and climate transitions reshape the soil under our financial systems, co-operative and mutual banks remain deep roots of trust, economic resilience and inclusive growth.

Two hundred and fifty years after the foundation of the first building society in Birmingham, the co- operative values of democracy, solidarity and self-help continue to resonate. The 2nd EACB Global Co- operative Banking Forum held as part of the Building Societies Annual 2025 Conference was a chance to pay homage to this legacy, but also to build on it with shared insights and reflections on the sector’s  future.

With historic ties to regions and communities, co-operatives are attuned to the real economy in a way that few competitors can match. Often the sole providers in the most remote areas, co-operative and mutual  banks serve as catalysts for financial literacy, economic inclusion, local investment and support for  households and small and medium enterprises (SMEs) in navigating the green and digital transitions. Over time, this proximity has enabled mutual institutions to take on well-calibrated risks on a long-term horizon for member-value. Particularly in times of crises, economies with strong co-operative sectors consistently prove more inclusive and resilient.

It is a fact that the mutual and cooperative models are thriving across the globe. In Europe alone, co- operative banks hold over 20% of the market, up to 60% in countries like France. But they stand out far beyond Europe, as shown by the EACB’s expanding global footprint which with the joining of Brazil’s Sicredi now spans from Europe to the Asia-Pacific to the Americas. They also thrive in scale. The recent acquisitions in the UK by Nationwide and Coventry Building Society of Virgin Money and the Co-operative Bank respectively reinforce the role of mutual lenders as drivers of growth.

Despite differences in regulatory environments, the discussions in the Forum churned out common challenges: increasing regulatory complexity, transformative digitalisation and fierce competition. The sector shall endeavour to remain cutting-edge while preserving its foundational co-operative identity and participatory governance.

At the same time, innovation must be met by a conducive regulatory framework.

That’s why I reiterate: diversity is not a luxury, it is a necessity.

As Europe mobilises large-scale investment to meet digital, green and sovereignty goals, the importance of a diverse banking sector takes on renewed relevance. We need to be capable of supporting both global ambitions and locally oriented economic activity. A simple, proportionate EU regulatory  framework that is fit for purpose and conducive to innovation will allow institutions across business  models and sizes, including co-operative banks, to thrive. There is evident room for simplification. Seizing this moment demands not only governance reform but also a shift in mindset among  policymakers. While financial stability shall remain a guiding principle, it must be seen in a broader balance with competitiveness and long-term growth.

In this light, the UK government’s commitment to doubling its mutual and co-operative sector sends a powerful message. It acknowledges not only past contributions but also the essential role these  institutions will continue playing in building regional cohesion and inclusive economic prosperity.

The EACB remains fully committed to championing the co-operative cause and advancing a diverse,  resilient banking sector that serves members and communities for generations. I call on regulators and policymakers to join forces with industry and stakeholders to build a regulatory environment that supports the co-operative ethos and its enduring mission.