Bankszöveti

Bankszöveti is a Hungarian term that translates to "credit cooperative" or "savings cooperative." These institutions are a specific type of financial cooperative operating primarily in Hungary. Unlike traditional commercial banks, bankszöveti are owned and controlled by their members, who are typically individuals or small businesses. The primary goal of a bankszöveti is to serve the financial needs of its members rather than to maximize profits for external shareholders.

These cooperatives offer a range of financial services similar to those provided by banks, including deposit accounts, loans, and payment services. However, their focus is often on local communities and smaller-scale economic activities. Membership in a bankszöveti usually requires a deposit, which signifies ownership and grants voting rights in the cooperative's governance. Profits generated by the cooperative are typically reinvested back into the business, distributed among members as dividends, or used to improve services.

The regulatory framework for bankszöveti in Hungary ensures their stability and compliance with financial regulations, often overseen by the Hungarian National Bank. They play a significant role in the Hungarian financial landscape, particularly in supporting local economies and providing accessible financial services to a broad segment of the population. The cooperative model emphasizes mutual support and shared responsibility among its members.