low-income individuals and small businesses, who may have difficulty accessing traditional banking services. By providing access to financial services and credit to these populations, cooperative banks can help promote economic development and reduce inequality. Additionally, cooperative banks are usually more resilient to economic crises and less prone to engage in risky behaviors, as they prioritize the long-term interests of their members rather than short-term profits.

Cooperative banking can also be seen in the context of the broader banking system. While cooperative banks may not have the same scale or reach as large commercial banks, they can provide an alternative to traditional banking models. Cooperative banks are typically locally owned and operated, focusing on the needs and interests of their members and communities, rather than maximizing shareholder profits. By offering an alternative banking model, cooperative banks diversify the banking sector and promote competition, potentially leading to more choice and better services for consumers.