MORE THAN THE FARMER'S FRIEND
The co-operative banks have made great strides in the century since
they were founded. But deregulation of the world's financial
markets and fierce competition from their commercial and savings bank
rivals are taking them into new uncharted waters.
The small West German town of Heddesdorf is situated in the gently
rising uplands of Altenkirchen, not far from Godesberg. For centuries,
its inhabitants have grazed cattle in this untroubled countryside, far
from the bustle of international financial markets. When funds have been
needed -- for new agricultural machinery, or to buttress cash flow --
they have been provided by the local co-operative bank, named after its
distinguished founder, Friedrich Wilhelm Raiffeissen.
The members of the local co-operative bank (in this case farmers
who own more than 40 cows) legally own their own bank. Every 12 months
they meet to discuss policy and performance. At the same...
