National Consumer Cooperative Bank: An Institution in Transition

摘要

The Bank was chartered in August 1978 to provide financial and technical assistance to cooperatives--enterprises collectively owned and operated for mutual benefit. However, it did not become operational until March 1980. GAO's review showed that the Bank has experienced much turmoil from major organizational changes, conversion from a mixed-ownership government corporation to a quasi-private institution, and high personnel turnover. While GAO found that recent Bank actions should improve Bank operations, the organizational changes reduced regional resources and this may limit the Bank's ability to develop cooperatives nationwide. Before this action the Bank could not demonstrate an ability to develop the cooperatives needed to sustain itself over the long term. A judgement of the Bank's situation should be tempered by the fact that the Bank has been operating only 3 years and may not have had time to demonstrate the ability to develop the needed cooperative universe. GAO also found that technical assistance and other cooperative development activities were deemphasized, contracting policies and procedures were not always followed, and questionable practices were associated with the process for electing nine Board members. On the positive side, GAO found that the Bank had improved shareholder and public communication efforts and had almost always consistently applied personnel policies.