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 loans and savings accounts, to their members, often focusing on local communities. The profits generated are typically reinvested into the bank or distributed among members, rather than being paid out to external shareholders. Unlike traditional banks, cooperative banks emphasize democratic decision-making, where each member has an equal vote, regardless of their financial stake. They often support local development and small businesses, contributing to the economic growth of their communities. Examples of cooperative banks include credit unions and mutual savings banks.