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Financial Cooperatives: Problems and Challenges in the Post-Crisis Era

Author

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  • Alexopoulos, Yiorgos
  • Goglio, Silvio

Abstract

The last years have witnessed a wide reshaping of the banking scene, the aftermath of which includes an increased risk of operative downsizing of the banking system towards certain customer segmentations, marginal areas and activities. Recently the banking scene has deteriorated, especially at the local level, as the financial crisis increased the scarcity of readily available, sufficient and reliable services. The present paper argues that this new reality creates new opportunities for financial cooperatives to increase their importance among the market and areas that they historically serve. Further, it argues that these changes can be exploited only if the financial cooperatives would be able to transform without losing their basic values and it outlines the critical path that the financial cooperatives should follow in order to provide efficient, and crucial for local development, services and products. This route goes through the development of new strategies and in certain cases of the modernization of their services. The authors also stress and define the risk of failing that might hinder the cooperative movement, as the huge potential of cooperative endeavors is rarely “translated” automatically to gains.

Suggested Citation

  • Alexopoulos, Yiorgos & Goglio, Silvio, 2011. "Financial Cooperatives: Problems and Challenges in the Post-Crisis Era," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 39(1), pages 1-14.
  • Handle: RePEc:ags:jlorco:163910
    DOI: 10.22004/ag.econ.163910
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    File URL: http://ageconsearch.umn.edu/record/163910/files/Alexopoulos%20jrc39-1_2011_.pdf
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    References listed on IDEAS

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    Cited by:

    1. Silvio Goglio & Andrea Leonardi, 2012. "The Motivations of Economic Behavior: the Case of Cooperative Credit," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 1(1), pages 65-84, December.
    2. Silvio Goglio & Yiorgos Alexopoulos, 2014. "Editorial: Cooperative Banks at a Turning Point?," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 3(1), pages 1-8, June.

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