COOPERATIVE BANK Meaning and
Definition
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A cooperative bank is a financial institution that operates on a cooperative structure, primarily owned and controlled by its members who are also its customers. Unlike traditional banks that are mostly profit-oriented, cooperative banks prioritize the interests and welfare of their members.
The distinguishing feature of a cooperative bank is its democratic set-up, with members having equal voting rights regardless of their financial contributions or investments. This democratic principle enables every member to have a say in the decision-making process and to elect the board of directors who oversee the management of the bank.
Cooperative banks offer a range of financial services similar to commercial banks, including deposit accounts, loans, mortgages, and investment products. However, their primary focus lies in serving the financial needs of their members and the local community, especially in underserved areas where other banks may be less accessible. As a result, cooperative banks often contribute to the economic development of these communities.
In addition to their financial services, cooperative banks also foster a spirit of mutual assistance and cooperation among members. They may provide financial education, training, and advisory services to help members improve their financial well-being. Cooperative banks aim to cultivate long-term relationships with their members, building trust and loyalty.
Overall, cooperative banks operate under the principles of self-help, self-responsibility, democracy, equality, equity, and solidarity. By prioritizing the interests of its members, a cooperative bank seeks to not only provide financial services but also contribute to the social and economic well-being of its community.
Common Misspellings for COOPERATIVE BANK
- xooperative bank
- vooperative bank
- fooperative bank
- dooperative bank
- cioperative bank
- ckoperative bank
- cloperative bank
- cpoperative bank
- c0operative bank
- c9operative bank
- coiperative bank
- cokperative bank
- colperative bank
- copperative bank
- co0perative bank
- co9perative bank
- coooerative bank
- coolerative bank
- coo0erative bank
- coopwrative bank
Etymology of COOPERATIVE BANK
The word "cooperative" is derived from the Latin word "cooperativus", which means "working together". Its usage in English to refer to an organization or business that is collectively owned and operated by its members dates back to the mid-19th century.
The term "bank" has Old Italian and Old French origins. It comes from the Italian word "banca" and the French word "banque", both meaning "bench" or "counter". In medieval Europe, banking transactions were often conducted on a bench or counter.
So, the etymology of "cooperative bank" combines the concept of "working together" from cooperative and the idea of financial transactions taking place on a physical counter from bank.
