Abstract: Co-operative banking has the longest historical background in finance, while the foundations of the banking system lay on the ground of a “large scale, mutually beneficiary, liquidity buffer”. The banking system is being under a constant dispute, be it ideological, religious, philosophic, political, academic or scientific. The global financial crisis, which has been ignited by a misunderstanding between the banks shareholders, the real estate operators, the workers and the stock exchange market operators is becoming a lack of currency, mainly because the money referred to, existed only as accounting figures. The co-operative banks are using only real money in their operations. They borrow real money from their members – depositors and they lend these fiat money to their members in need for credit. Such a banking system, operating in parallel in most EU countries, is becoming an alternative source of liquidity for the SMEs and a secure deposit for the citizens. Examining the published results of a sample of co-operative banks and their similar institutions, in some EU countries, shows an increment of their volume of transactions, as the financial crisis was deepening, indicating some correlation.
Co-Operative Banking; An Alternative Finance After the Global Crisis
Verardi F;
2011-01-01
Abstract
Abstract: Co-operative banking has the longest historical background in finance, while the foundations of the banking system lay on the ground of a “large scale, mutually beneficiary, liquidity buffer”. The banking system is being under a constant dispute, be it ideological, religious, philosophic, political, academic or scientific. The global financial crisis, which has been ignited by a misunderstanding between the banks shareholders, the real estate operators, the workers and the stock exchange market operators is becoming a lack of currency, mainly because the money referred to, existed only as accounting figures. The co-operative banks are using only real money in their operations. They borrow real money from their members – depositors and they lend these fiat money to their members in need for credit. Such a banking system, operating in parallel in most EU countries, is becoming an alternative source of liquidity for the SMEs and a secure deposit for the citizens. Examining the published results of a sample of co-operative banks and their similar institutions, in some EU countries, shows an increment of their volume of transactions, as the financial crisis was deepening, indicating some correlation.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.