cooperative bank: meaning, definition, pronunciation and examples
C1Formal, Business, Financial
Quick answer
What does “cooperative bank” mean?
A financial institution that is owned and democratically controlled by its members, who are typically its customers. Profits are often returned to members or reinvested into the community, rather than distributed to external shareholders.
Audio
Pronunciation
Definition
Meaning and Definition
A financial institution that is owned and democratically controlled by its members, who are typically its customers. Profits are often returned to members or reinvested into the community, rather than distributed to external shareholders.
A cooperative bank operates on cooperative principles of voluntary membership, democratic member control, member economic participation, and concern for community. It can be a local retail bank, a credit union, or part of a larger cooperative banking network.
Dialectal Variation
British vs American Usage
Differences
In the UK, 'co-operative bank' (often hyphenated) is a specific term for member-owned banks like The Co-operative Bank. In the US, the term is used but 'credit union' is more common for similar member-owned financial institutions. 'Mutual savings bank' is another related US term.
Connotations
UK: Often associated with ethical banking, historical roots in the cooperative movement. US: Connotes community-focused, local, and potentially smaller-scale financial services compared to national banks.
Frequency
More frequent in UK English due to the prominence of specific institutions. In US English, 'credit union' is significantly more frequent.
Grammar
How to Use “cooperative bank” in a Sentence
[Member/Client] + banks with + [cooperative bank][Cooperative bank] + offers + [financial products][Cooperative bank] + is owned by + [its members]Vocabulary
Collocations
Examples
Examples of “cooperative bank” in a Sentence
verb
British English
- They decided to cooperative bank their savings with a local building society.
- (Note: 'Bank with' is the standard phrasal verb; 'cooperative bank' as a verb is highly unconventional and not recommended.)
American English
- Many residents choose to bank with the local credit union rather than a cooperative bank. (Using 'bank with' as the verb).
adverb
British English
- (No standard adverbial form derived directly from 'cooperative bank')
American English
- (No standard adverbial form derived directly from 'cooperative bank')
adjective
British English
- The co-operative banking sector has a strong tradition in the UK.
- She preferred a cooperative banking model for its ethics.
American English
- The cooperative banking principles align with our community's values.
- They explored cooperative banking options in their state.
Usage
Meaning in Context
Business
Used in reports discussing financial sector diversity, ESG (Environmental, Social, Governance) investing, and alternative banking models.
Academic
Appears in economics, finance, and sociology papers analyzing cooperative movements, economic democracy, and comparative banking systems.
Everyday
Used when discussing personal banking choices, especially relating to ethics, local community support, or seeking alternatives to large high-street banks.
Technical
Precise term in banking regulation, distinguishing legal structures (e.g., under the International Cooperative Alliance principles).
Vocabulary
Synonyms of “cooperative bank”
Strong
Neutral
Weak
Vocabulary
Antonyms of “cooperative bank”
Watch out
Common Mistakes When Using “cooperative bank”
- Misspelling as 'cooporative' or 'co-operative' (hyphen usage varies). Using it as a synonym for any small bank. Incorrectly assuming all their products are cheaper (focus is on profit distribution, not always pricing).
FAQ
Frequently Asked Questions
They are very similar concepts, both being member-owned financial cooperatives. The difference is often legal and historical. In the US, 'credit union' is the standard term, while in the UK, 'co-operative bank' or 'building society' are more common.
Yes, in developed countries, cooperative banks are typically subject to the same stringent financial regulations and deposit insurance schemes (like the FSCS in the UK or NCUA in the US for credit unions) as commercial banks, making them equally safe for savers.
It depends on the bank's specific 'common bond' or field of membership. Some are open to anyone in a geographic community, while others are for members of a certain profession, employer, or association. You usually have to apply to become a member.
Yes, they need to be financially sustainable. However, profits (or 'surpluses') are typically reinvested into the business to improve services, used to offer better rates, distributed to members as dividends, or invested in the local community, rather than paid to external shareholders.
A financial institution that is owned and democratically controlled by its members, who are typically its customers. Profits are often returned to members or reinvested into the community, rather than distributed to external shareholders.
Cooperative bank is usually formal, business, financial in register.
Cooperative bank: in British English it is pronounced /kəʊˈɒpərətɪv bæŋk/, and in American English it is pronounced /koʊˈɑːpərətɪv bæŋk/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “[None directly for this specific compound term]”
Learning
Memory Aids
Mnemonic
Think: 'CO-OP' (a cooperative store) + 'bank'. It's a bank you co-own and operate with other members.
Conceptual Metaphor
A BANK IS A COMMUNITY (emphasizing shared ownership and mutual benefit rather than a profit-centric transaction).
Practice
Quiz
What is a defining characteristic of a cooperative bank?