Co-operative Banks and Agricultural Finance in Karnataka

Cooperative banks are owned by their customers and follow the cooperative principle of one person one vote. Co-operative banks are often regulated under both banking and cooperative legislation. They provide services such as savings and loans to non-members as well as to members and some participate in the wholesale markets for bonds money and even equities. Many cooperative banks are traded on public stock markets with the result that they are partly owned by non-members. Member control can be diluted by these outside stakes so they may be regarded as semi-cooperative. Cooperative banking systems are also usually more integrated than credit union systems. Local branches of co-operative banks select their own boards of directors and manage their own operations but most strategic decisions require approval from a central office. Cooperative banks are owned by their customers and follow the cooperative principle of one person one vote. Co-operative banks are often regulated under both banking and cooperative legislation. They provide services such as savings and loans to non-members as well as to members and some participate in the wholesale markets for bonds money and even equities. Many cooperative banks are traded on public stock markets with the result that they are partly owned by non-members. Member control can be diluted by these outside stakes so they may be regarded as semi-cooperative. Cooperative banking systems are also usually more integrated than credit union systems. Local branches of co-operative banks select their own boards of directors and manage their own operations but most strategic decisions require approval from a central office.