A common argument against a strong role for banks in corporate governance is that, because of their lending activities, they do not act in the interests of shareholders, even when they have an equity stake in a firm. For example, consider the incentives of a bank when one of its large borrowers is having financial difficulty.
Over a period of time, all co-operative banks would be at par with commercial banks as far as regulatory norms are concerned and all prudential norms would be made applicable to them.