Being a member of a cooperative bank:ethical or financial decision?

Damien Egarius and Patrick Roger
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Damien Egarius: LaRGE Research Center, EM Strasbourg Business School, Université de Strasbourg

Revue Finance Contrôle Stratégie, 2016, vol. 19, issue 4, 27-51.

Abstract: The definition of co-operative banks given by the International Cooperative Banking Association (ICBA) states that co-operative members, who buy and hold member shares, believe in the ethical values of honesty, openness, social responsibility and altruism. Using a unique database of 246,120 clients/members at a cooperative bank, we show that the trading volume of member shares is far from insignificant. The analysis of clients’ portfolios over a 13-month period shows that clients use member shares as standard savings and investment vehicles. These results show that the reasons given by the ICBA to become a member of a cooperative bank are unimportant in the decision process.

Keywords: cooperative banks; bank membership; capital requirements; investor behavior. (search for similar items in EconPapers)
JEL-codes: G21 G32 P13 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:dij:revfcs:v:19:y:2016:i:4:p:27-51.

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