Subbarao warns against casino banking
Agencies: Mumbai, Nov 16 2012, 21:54 IST
that recent financial crisis saw many large commercial banks go belly-up, he said the cooperative business has been more resilient as its source of stability is the inclusiveness embedded in its very structure, which ensures that they aren't enterprises run for short-term profits, but are a business model for long-term sustainability and inclusive growth.
The experience of the 2008 global credit crisis has in fact generated serious thinking about cooperatives as a bulwark for financial stability as they do only basic banking and do not indulge in investment banking or trading, thus are not dependent on bulk or wholesale markets for funding, he said.
Noting that globally the cooperative movement covers over a billion people, he pointed out that India, China and the US have the largest number cooperative memberships, while Germany, France, the Netherlands and Italy lead in the number of cooperative banks.
With around 6 lakh cooperatives, India has the largest cooperative movement in the world.
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