Definition of Cooperative Bank
Various kinds of small credit cooperative society collectively establish banking institution to meet own financial transactions is called a cooperative bank. Cooperative banking is retail and commercial banking organized on a cooperative basis. Cooperative banking institutions take deposits and lend money in most parts of the world. All kinds of depositors can deposit their money in this bank but credit facility is given only the members of the cooperative society. The rate of credit is less and the installment is reasonable as well. Merchants’ organization also allowed for sanctioning the loan. The banking activities of the cooperative society are very transparent and reliable. Ensure the financial progress is the main objective of this bank.
Cooperative banking, as discussed here, includes retail banking carried out by credit unions, mutual savings banks, building societies, and cooperatives, as well as commercial banking services provided by mutual organizations (such as cooperative federations) to cooperative businesses.
