Question 1

What is ZEF?

Accepted Answer

ZEF (Cooperative for Ethical Financing) was founded in 2014 by 101 members. Today it is the largest cooperative in Croatia with over 806 members - citizens, businesses, associations, trade unions, cities, and municipalities. ZEF builds ethical finance infrastructure and works on establishing the European Ethical Bank.

Question 2

How is ZEF governed?

Accepted Answer

ZEF operates on the principle of '1 member = 1 vote'. There are 2 regular annual assemblies and extraordinary ones as needed. Voting is possible online. The governance structure includes: Supervisory Board (5 members, 4-year term), Managing Director (5-year term), Conciliation Council (3 members), Representative Assembly (21 members), 5 business sector sections, and 5 regions.

Question 3

What services does ZEF offer its members?

Accepted Answer

ZEF operates as a one-stop-shop: crowdfunding for members, accounting, business partner matching, consulting, and all information in one place. Members include individuals, businesses, crafts, family farms, municipalities, NGOs, and trade unions.

Question 4

What are the innovative governance tools?

Accepted Answer

ZEF uses 5 innovative tools: (1) Institutional fractionalism - ability to form interest groups, (2) Financial decentralization - members choose where their money goes, (3) Full transparency, (4) Internal conflict resolution via Conciliation Council, (5) Continuous education through seminars, webinars, and manuals.

Question 5

How can I become a member?

Accepted Answer

1. Fill out the application at pristupnica.zef.hr. 2. Pay the basic membership stake of €331.81 to IBAN: HR0523400091110656638 (PBZ). 3. Legal entities pay the mandatory additional membership stake to IBAN: HR5423400091510702768 (PBZ) - the amount depends on type and size. A voluntary additional membership stake of any amount may be paid to the same IBAN.

Question 6

Who can become a member?

Accepted Answer

Any individual or legal entity from Croatia or abroad - individuals, businesses, crafts, family farms, associations, trade unions, municipalities, and cities. The only exception is political parties, whose membership is prohibited.

Question 7

What are the membership stakes for legal entities?

Accepted Answer

Total membership stakes for legal entities are: newly established companies and non-profits without employees €663.62, non-profits with employees and micro-enterprises €1,327.24, small enterprises, public and private institutions, foundations and funds €2,654.48, medium enterprises and legal entities within local self-government €6,636.20, large enterprises €13,272.40.

Question 8

Jesu li članski ulozi povratni?

Accepted Answer

Yes. The basic membership stake, the mandatory additional membership stake and the voluntary additional membership stake are all recorded as financial assets (similar to shares) and are returned to the member within a maximum of 3 years from the date of membership termination.

Question 9

How can members contribute?

Accepted Answer

Financially, with energy, time, work, knowledge - according to interests and available capacities. Members can participate in shaping programs and policies within their section or region, implement their own ideas, help organize meetings, and support the establishment of the European Ethical Bank.

Question 10

What do I get by joining ZEF?

Accepted Answer

Members gain access to a vast internal market for placing goods and services, for collaborations and joint action, and equal influence on ZEF's programs and policies. ZEF helps through a wide network of contacts, as well as individual and aggregated knowledge on sustainability, alternative finance, and new technologies gathered over more than a decade of work in local, regional, and European contexts.

Question 11

What is the European Ethical Bank?

Accepted Answer

EEB is a digital European bank operating on ethical banking principles (FEBEA). Ultimately owned by its clients, it uses the FairShares governance model. The goal is investing in value creation through entrepreneurial activities and keeping added value within local communities.

Question 12

Where will the bank be licensed?

Accepted Answer

In Lithuania - a European leader in financial innovation. As an EU and Eurozone member, the license enables banking operations across all EU states (including Croatia) as well as Norway, Iceland, and Liechtenstein. ZEF and its partners have completed >80% of the licensing process.

Question 13

What is Echoes Srl. SB?

Accepted Answer

A holding company registered in Milan through which EEB is being established. ZEF currently holds a controlling stake in Echoes. Upon completion of capitalization, Echoes applies for a banking license through a subsidiary in Lithuania.

Question 14

Why a bank and not a fund or foundation?

Accepted Answer

A bank is the cornerstone of the financial system - every other institution holds an account at some bank. Only a bank can create money through credit multiplication. Beyond that, it offers the widest range of financing options, clients automatically support the mission, and it enables management of the entire economic value chain. The key advantage is the banking multiplier - 10x capital increase, unlike a fund or foundation.

Question 15

What happened with establishing the eBank in Croatia?

Accepted Answer

After three attempts to establish an Ethical Bank in Croatia, at the 16th extraordinary Representative Assembly of ZEF held on October 26, 2019, a decision was made to initiate the process of gathering partners to establish a joint European Ethical Bank headquartered in Lithuania, which through the 'Bank passporting' directive would be able to provide banking services in all European Union member states.

Question 16

What are the challenges for cooperatives in Croatia?

Accepted Answer

Croatia is the only European country without an umbrella cooperative organization. Cooperatives are unrecognized as a valid business model, face unclear tax treatment, discrimination from financial institutions, inability to obtain a banking license, lack of media access, and education. It is estimated that there are fewer than 100 active cooperatives with fewer than 5,000 members.

Question 17

How does ZEF use collected funds?

Accepted Answer

Funds are used to develop ethical finance infrastructure - mutual financing (€2M invested), microloans for rural development (€300,000, €8.6M additional investments), microloans for social entrepreneurs (€170,000), pre-financing for small fishermen, and work on establishing EEB.

Question 18

Does ZEF have global experience?

Accepted Answer

Yes - ZEF has consulted in Colombia (complementary currency), the Philippines (cooperative banks), Brazil (environmental risk assessment), and Canada (digital tools for cooperative banks). It regularly presents at conferences worldwide - from UN FFD4 in Seville to Impact Week in Singapore.

Frequently asked questions

About ZEF

Membership

European Ethical Bank (EEB)

Challenges & future