...Treasurer for AECR Members: Banco Cooperativo Espa±ol S.A.'s (BCE) ratings reflect its low risk appetite, adequate risk management and stable liquidity profile. They also factor in its strategic importance as treasurer for the members of the Spanish rural credit cooperative association, known as AECR, which provides the bank with a stable, albeit low-margin, business but results in a fairly high leverage. Channelling Liquidity Is Main Function: BCE's main function is to channel liquidity from and to AECR members. The structure and size of the bank's balance sheet depend on the liquidity and financing needs of AECR members. BCE's risk management and controls systems are sound and appetite for market risk is limited, although the concentration in Spanish public debt is high. Treasury Agreement Mitigates Risks: BCE managed about EUR6.7bn at end-June 2016 (30% of total assets) on behalf of the AECR members under the treasury agreement, whereby all cooperative banks guarantee the credit risk...
