During Coop Fortnight 2020 we’ve been highlighting the values and principles which shape a community bank. The third cooperative principle looks complicated, especially the definition, however ‘member economic participation’ is very easy to explain when looking at a community bank.
Member Economic Participation
Members contribute equitably to, and democratically control, the capital of their co-operative. At least part of that capital is usually the common property of the co-operative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any of the following purposes: developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the co-operative; and supporting other activities approved by the membership.
What does ‘Member economic participation’ mean to Northern Community Bank?
Northern Community Bank collects money from its members in the form of savings and then loans that money out to other members. As our community bank has grown, we have collectively saved millions of pounds and been able to offer that money to neighbours in the community at affordable rates of interest. The interest the loans generate goes back into making the community bank function and allows more people in the community to access fair finance. When Northern Community Bank performs well and there is a surplus, we pay that back to members in the form of a dividend.
As a cooperative we have no outside shareholders, the only people to benefit are members and the wider community who can access our services.
How can I help?
Think Northern Community Bank first when looking at saving or borrowing options, and if you like benefit from our services then your friend and family will – recommend us!
