Cooperative banks are financial institutions that are owned and operated by their members, who are also their customers. These banks aim to provide affordable banking services, such as savings accounts and loans, to their members while promoting community development. The profits generated are often reinvested into the bank or distributed among members. Unlike traditional banks, cooperative banks focus on serving the needs of their members rather than maximizing profits. They typically operate on the principle of mutual assistance, where members support each other financially. This model fosters a sense of community and encourages responsible banking practices.