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Education for good governance
- the German Experience
1 Cooperative Financial Sector; Academy of
German Cooperatives
YOUR CONTACT:
Rüdiger MeisterDivision Manager
Phone: +49 2602 14-158
Mail: [email protected]
AKADEMIE DEUTSCHER GENOSSENSCHAFTEN ADG
COOPERATIVE SECTOR IN GERMANY:
A total of 5669 Cooperatives
Local Cooperative Banks Volks- and Raiffeisenbanken
Members: 20 Mio. entire cooperative sector
22% of Germany's Population
Cooperative Banks Commercial goods and
services cooperatives Rural cooperatives Housing Cooperatives (..)
Local Cooperative Banks
• Banks: 1 083• Bank branches: 13 056• Balance sheet total in
bn Euro: 1,008.00
Mitgliedermotiv BVR
– Members: 17 713 000
– Customers: 31 000 000
– Employees: 160 000
ADG is embedded in the Cooperative Financial Sector
ADG operates on a country-wide basis as a provider of Human Resources Development services for the management and experts in the German Cooperative System.
The Academy of German Cooperatives in Brief
• Business segment: Provider of Managerial and Financial Training
on National Level
• Target groups: Managers and experts of
• Establishment: 1970
• Personnel: Total 220 at Montabaur Castle (end 2013)
• Accomodation: Hotel Schloss Montabaur, total of 295 beds
Cooperative banks (Volksbanken and Raiffeisenbanken) Other Cooperatives Central and specialized (financial) institutes Other enterprises Internationally: Financial Institutions
Education of Executive Board Managers
Education of auditors/chartered accountants
Further training of Financial Experts & Cooperative Managers
Provision of Finance-oriented Bachelor-/Master degrees
Conferences on financial market issues
HR consultancy, development and assessment
E-learning
WORKING FIELDS OF ADG (excerpt)
ADG - Figures 2013:
Year Number of Seminars
Number of attendants
Employees Turn Over Operational Result
2013 1,305 17,003 220 32.3 € Mio 549,000 €
Legal Status of ADG: Registered Association (non for profit; „eV“)
Income is generated from three sources:
Seminar Fees
Hotel Accomodation/Boarding
Annual Member-Fees
ADG-International: Segments
Cooperation activities with International Cooperative Institutions (e.g. Tarakék Hungary; The Co-operative College; FECOPROD Paraguay; OCB Brasil; Raiffeisen
Switzerland; Austria; CIBP)
International Financial Training & Consulting Projects in LDCs funded by
Donor-Organizations (e.g. KfW, GIZ, EIB, ABD, Worldbank)
ADG-International: Products & Services
- Financial Expert Day- ISB Summer School
2015 on Social banking along with GLS bank
- …
- LINK- Sales Management- Risk Management- Train-the-Trainer- …
- Knowledge brokerage- Assessment tools- Banking Simulation
Games- E-learning- …
- Sri Lanka- Myanmar- Nepal- Iraq- East Africa- China- ...
ADG International
Projects Technical
Assistance Financial Sector
Programs,Seminars, Workshops
ConferencesFurther Services
2 EDUCATION FOR GOOD GOVERNANCE
Cooperative Governance – legal basis
German Banking Law („Kreditwesengesetz“), § 25 c- Since 01.01.2014: extended requirements for the Members of the Executive
Board of a Cooperative.
Authorisation by the German Supervisory Authority („Bafin“) shall be refused if „ facts are known which reveal that the proprietor or one of the persons specified in section 1 (2) sentence 1 is not trustworthy or does not have the professional qualifications required to manage the institution..”
Board Members need to have theoretical and practical knowledge/
experience in Managing a Financial Institution The institutions have to provide adequate personnel and financial ressources for the acquirement and maintenance of these competencies
Cooperative Governance – legal basis § 25 German Banking Law („Kreditwesengesetz“)
Continuous and regular further education is required (§ 25 a, 1)
§ 25 German Banking Law (25 d)Analogue – and following up on the Financial Crisis experience – extended requirements for the Members of the Supervisory Board of a Cooperative (§ 25 d, 1)
trustworthiness professional qualification required to supervise the institution Supervisory Board Members need to allocate adequate time for
their tasks The institutions have to provide adequate personnel and financial
ressources for the acquirement and maintenance of these competencies Continuous and regular further education is required and part of
the annual auditing
Cooperative Governance – legal basis § 25 German Banking Law (25 d)For the aquirement of the necessary competency of a Member of the Supervisory Board the following topics are listed:
Function & responsibility of Supervisory Board <> Executive Board Relevant economic and legal issues Risk Management Financial Accounting Supervisory Law
ADG provides Qualification for the Members of the Board according to the legal requirements Executive Managers
Programs on Management Education
InterdisciplinaryQualification
Specific Qualification Others
BankCOLLEG Forum for Bank Managers
Expert Cycles, Workshops and seminars on:Strategy; Leadership; Business Development; Credit Decisions; Bank Management/Risk; Product Development; Cost Management (..)
Individual Coaching & Advise
GBF/Bachelor Degree
„FIT“ – Bank Management and Leadership„FIT- Plus“ (= regular follow-up)
TOP/Master Degree
Example : Management of Cooperative Banks (GBF)
Overall
Focus: develop General Management Competencies and provide Bank Management-Qualifications according to § 25 Banking Law.
Target group
Since 1972 approx. 9,000 managers of Cooperative Banks joint the GBF-Courses and got permission to become board member of a bank (according to German Federal Financial Supervisory Authority / Bundesanstalt für Finanzdienstleistungsaufsicht, “BaFin” requirements)
Content
- Strategy
- Management and Leadership
- Marketing and Sales
- Process optimization; back office processes
- Risk Management, controlling, legal framework
Certification
Certificate in Bank-Management (”Diplomierter Bankbetriebswirt ADG”; cross-crediting with Bachelor of Finance)
Duration
Basic course: 2 x 4 weeks; elective course: 2 weeks; examination: 1 week
ADG provides Qualification for the Members of the Board according to the legal requirements Members of the Supervisory Board
Required Knowledge Seminars for Members of Supervisory Board
Rights & liabilities of the Supervisory Board Members (directorship)
- Structural and organizational requirements for the Supervisory Board and its Committees
- Regulation on the Supervisory Requirements for the Institutions` Renumeration System
- Annual efficiency audit based on the Corporate Governance Code - Executive Board employment contract(..)
ADG provides Qualification for the Members of the Board according to the legal requirements Members of the Supervisory BoardRequired Knowledge Seminars for Members of Supervisory Board
Relevant economic and legal issues Risk Management Financial Accounting Supervisory Law
- Compliance Regulations- Consumer Rights- Capital Requirement Directives I – IV- Supervisory Board By-Laws- Credit Analysis- Credit Risk Management- Risk Reporting Requirements- Financial Accounting Principles for the SB- Forum for Members of the SB and
Representatives of the BAFIN- (..)
Summary• Governance is KEY for future Cooperative Banks` performance: Executive
Managers have to find adequate responses on the market- and supervisory challenges. On the bases of trustworthiness and mature management competencies – relevant for their key-function as change-managers.
• Legal & supervisory requirements (German Banking Law; § 25) have been reviewed and extended – in the light of the Financial Crisis experience. Managerial education is explicitly demanded.
• Education for Good Governance therefore is a legal and an economic must. In particular in a decentralized cooperative organization with more than 1,000.00 independent local banks and approx. 160,000.00 employees.
• Since 1970 ADG has educated approx. 9,000.00 Board Managers.• The number of trained members of the Supervisory Board is significantly
increasing.• ALL teaching methods (classroom; inhouse; webinars ..) have to be applied
OutlookBased on the common cooperative principles and taking the crucial role of „Education for Good Governance“ into account CLOSE COOPERATION BETWEEN THE COOPERATIVES COLLEGES AND ACADEMIES IN THIS FIELD is very much recommended.
Let us co-operate..
