Co-operative banking and insurance
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Inspired by its own history, BRS pays particular attention to the cooperative functioning of microfinancing institutions. Plenty of examples show that a co-operative is an interesting business model for microfinancing. |
As the word “cooperative” already clearly indicates, “working together” is central to a co-operative. People working together is nothing new, but this collaboration is also formally governed by rules in a co-operative. What is unique about a co-operative is the fact that people co-own a business of which they are also clients. The members, or rather the partners of a co-operative, are all part-owners that constitute altogether the co-operative’s General Meeting. The main decisions are taken here in the highest decision-making body. Unlike other types of partnership, power is not determined by the person holding the most capital, but rather by the “one person, one vote” principle. There are many variations to the co-operative, but the democratic starting point is an important pillar of the co-operative.
Even more important than the legal singularity of the co-operative is the cooperative vision. Most co-operatives start out as successes when the people take control themselves in order to provide together a solution to their problems. The co-operative testifies to a belief in one own abilities. People bear responsibility themselves for their business, but at the same time, the co-operative follows strict rules for its control and monitoring. These basic rules were laid down for the first time in the so-called Rochdale principles, by a weaving society in the Manchester area (England). It was a time of extreme poverty, with a life expectancy of only 21 years!
Raiffeisen started up its saving and credit co-operative for people who had their backs against the wall because of poverty. But instead of only relying on charity, they managed to climb out of their misery thanks to cooperation and mutual solidarity.
This is the cooperative spirit that matters to BRS and that it wants to spread in its cooperation.
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