Vol. 5 No. 1 (2021)

Resilience of Financial Cooperatives during Recession: An Overview

Published 2021-09-26


All around the world financial and economic crisis have made the role and relevance of co-operatives more apparent. During crisis co-operative model of business has proven to be most resilient than any other model of business. In difficult times cooperatives have not only survived well but also shown better results compared to investment banks. Financial cooperatives have proved stability in their growth and progress even in crisis with well capitalization. Due to the unique combination of members ownership and control, financial cooperatives delivered a series of benefits over its competitors. Cooperatives operate on the principle of serving their members, rather than aiming to maximize returns on investment. Hence it is vital to understand the cooperative model of business. This paper highlights how financial cooperatives have shown resilience to the global financial crisis. It emphasize the significance of co-operatives business modelin global financial crisis in contrast with to the Investment-owned banking system.