Coop mergers seen intensifying

The pace of mergers between the Cooperative Credit Societies is seen accelerating with the Coop movement expecting the merger of at least 135 Coops under the umbrella of 21 major units, which eventually will absorb the operations of another 80-85.

From the current levels of 314 Coops, which are down from 360 at the beginning of 2005, and seen declining to 207 by the end of 2006, the overall number of Coops is seen shrinking to the more manageable 140 by the end of 2007.

The Coops are rushing to merge in order to meet tougher EU directives, which in the process strengthens their capital and makes them more adapt to withstand the increased competition from the commercial banks that are stealing business away.