Cooperative banks also have a significant presence in South Korea, Japan, Canada, Morocco, Mexico and Brazil. So the question immediately arises: how come that no such institution has ever been set up in Malta? After all one would have thought that the idea of cooperation and solidarity, and the spirit of the Seven Basic Principles of the International Cooperative Alliance (ICA) would have a strong appeal in Malta. These seven principles consist of: voluntary and open membership; democratic member control; member economic participation; autonomy and independence; education, training and information of members and employees; cooperation with other cooperatives; and, especially, concern for the community. Moreover, we do have cooperatives in other spheres of activity here, and these have been around for some time. Indeed, the start of the cooperative movement in Malta dates back to the later years of the 19th century (around 1884), and the first form of legislation regulating cooperatives here – the Cooperative Societies Ordinance 1946 – came into effect on 12th December of that year. Initially the movement took root in the agriculture and fisheries sector, which in those times employed a significant part of the population. But later, as Malta developed socially and economically, the movement continued to flourish and to expand, and new cooperatives were set up in practically every sector of the economy. Indeed, there are currently some 60 cooperatives in Malta, with over 5000 members, spread over a wide range of activities.
Josef Bonnici: An alternative model for banking in Malta – a case for setting up a cooperative bank in Maltese economic realities Address by Professor Josef Bonnici, Governor of the Central Bank of Malta, at the Seminar on “Cooperative banking”, Valletta 27 September 2012. *  *  *  Honourable Ministers, distinguished guests, ladies and gentlemen. As the previous speakers have shown, cooperative banks, though not often in the news, in these times perhaps thankfully, have a considerable presence in most countries, particularly, but not only, in European countries. Indeed, data for 2010 show that in Europe cooperative banks hold a market share of over 20% of deposits and a similar market share for loans. Their presence is particularly marked in France, where the three cooperative banking groups (Credit Agricole, BPCE and Credit Mutuel) account for some 50% of the market share for loans and 60% of that for deposits. There is also a significant presence in Italy, where they enjoy a market share of 34% of deposits and 30% for loans; in Germany, where they have a market share of 19% for deposits and 16% for loans; in the Netherlands, with a market share of 43% of deposits and 30% for loans; and in Finland, with a market share of 34% for deposits and 32% for loans. They include, apart from the well-known French banks already mentioned, such respected names as Rabobank in Holland and the Raiffeissen banks in Germany.