The Greek Cooperative Credit System

Abstract

The credit cooperative system was introduced into the Greek banking system at the beginning of the 1990s. According to Greek Law, the credit cooperative system is distinguished between cooperative banks and credit cooperatives. Cooperative banks are banking institutions, while credit cooperatives are not banking institutions and cannot offer banking services. Since its establishment, the credit cooperative system has developed remarkably with regards to the number of cooperative banks, geographic regions and banking operations. Some cooperative banks exhibit much higher development in comparison to others. On a national level, cooperative banks have a limited position in the Greek banking sector concerning assets and branches. This is primarily due to the restrictions imposed on the credit cooperative system by the Greek legislative framework and the absence of cooperative banks in Greece’s two main urban centers. The Greek credit cooperative system is characterized by its autonomy based on independent local cooperative banks. These banks undertook efforts to create a nationwide non-cooperative bank.