The applicability of co-operative banking in Malta : an assessment

Abstract

The main objective of this study was to analyse the applicability of co-operative banking in Malta. The objective of this study was achieved by means of data collected from twenty-one mailed questionnaires, supported by seven interviews with experts from the main co-operative authorities and organisations, two interviews with lawyers and bank managers, as well as a series of semi-structured interviews with representatives of eight national co-operatives. The findings of the study clearly indicated that the establishment of a co-operative bank can be beneficial for the co-operative movement in general. Co-operatives agree to the notion of co-operative banking since it promotes co-operative principles and objectives. They would consider becoming members of the co-operative bank and participate in membership activities. However, the study also showed that at present, national co-operatives lack knowledge about co-operative banking and factors discouraging its establishment outweigh those encouraging it. Co-operative banks play an important role in the stability of financial systems. Identifying the applicability of co-operative banking will affect the direction of the Maltese co-operative movement and this shows the need for it. At present, there are legislative barriers obstructing the establishment of co-operative banks in Malta. It is also hoped that further to the study, a serious attempt be made to accommodate for co-operative banking, particularly with regards to amending the necessary legislation.