Co-op News (August 2019)

CO-OP CULTURE IN
FINANCIAL
MARKET$
Has Desjardins lost its
co-operative mission?
BY ANCa VOINEA
Has Canadian co-op Desjardins Group
moved away from its original mission
and co-op culture? A new study by the
Institute of Research and Socio Economic
Information (IRIS) argues that changes
in the banking sector have impacted
Desjardins’ own approach to meeting its
members’ needs.
In its report, the Montreal-based
research institute examines the evolution
of Desjardins from the moment it was
set up by Alphonse Desjardins to its
current position. Desjardins is the largest
federation of credit unions in North
America. The local credit unions are
known as caisses.
According to the research, Desjardins’
first shift in approach occurred in the
1960s when workers started to earn
more and – finding themselves in a
more prosperous economy – wanted to
own more property and luxury goods.
They started turning to banks for loans
to acquire them – and, in response,
Desjardins increased its number
of consumer loans.
In 1961, its loans accounted for only
8.8% of total assets, the research says –
but in 1971 this proportion reached 19.3%.
Since 2002 mortgages and loans for
consumption represent on average 50%
of the group’s total assets.
34 38 | | AUGUST 2019