Credit Cooperatives are cooperative financial institutions, whose objective is to provide their members with contemporary financial services.

The purpose of a credit cooperative’s business is to offer its members financial services at the most favourable rates possible. In that regard, a credit cooperative differs from a commercial bank, whose objective is to make as big a profit as possible.

At the general meeting, members elect the credit cooperative’s supervisory board, who in turn appoints members of the management board. Each member the credit cooperative has one vote. The management board presents an overview of the economic activities of the credit cooperative to the members at the general meeting.

As the name itself suggests, the principal services provided by a credit cooperative are depositing and loaning. More and more credit cooperatives expand their range of services by offering lease and factoring transactions and issuing guarantees. In some credit cooperatives, the use of internet bank is made available.

Each member/client of a credit cooperative is also part-owner of the credit cooperative. Simply put, a credit cooperative is a bank owned by its members, where the everyday business operations are performed by a management board nomitated by a supervisory board. Members have the right to a share of the credit cooperative’s profit.

Credit cooperatives are based on domestic capital. They aid in promoting living and carrying on businesses also outside the capital. Cooperative financial services help ensure the economic and social situation of people and small businesses both in country areas and towns.