Cooperative banks are set to make a comeback, with regional meetings to inform the public scheduled for October, during which people will be able to sign up.
Established in 2021, the Pancyprian Society for the Promotion of Cooperativism has been diligently working towards the launch of the first cooperative bank, aiming to revitalize the economy with a fresh and sustainable approach. According to Panikos Hambas, Chairman of the Society, it's members are backed by a diverse group of trade unions and organizations, including those representing the police, fire department, teachers, agricultural workers, and community unions, all dedicated to supporting the interests of workers. Hambas highlighted the strong interest among people who are eager to escape the "suffocating hold" of traditional commercial banks. He emphasized that all necessary legal procedures will be strictly adhered to before the first cooperative bank opens its doors.
Why and how the new cooperative bank will form:
The new cooperative bank aims to support low-income individuals, particularly younger generations who struggle to start their lives with loans from commercial banks. To finance the operations, the co-op will require capital, and according to Chairman Panikos Hambas, a significant portion will be raised through the sale of stocks. These shares will be available for purchase online before the co-op officially opens. If the initiative does not succeed, all funds will be refunded to investors.
Hambas also emphasised that the cooperative will keep operational costs low by avoiding high salaries, enabling the bank to offer products at more affordable rates than commercial banks.
Our opinion
This is a promising step forward in supporting young couples and low-income families. We hope that the new cooperative bank will adopt improved systems and procedures, learning from past mistakes, to ensure a seamless and positive experience for their customers. We are optimistic that the cooperative will not only provide financial relief but also foster a sense of community and empowerment among its members. It is crucial, however, that the bank learns from the past and implements systems and procedures that are robust, transparent, and customer-focused.
