Cooperative Banks and Financial Inclusion

―The case of French Cooperative Banks―

Abstract

The purpose of this study is to clarify how the cooperative banks contribute financial inclusion. In France where cooperative banks take more than half of the market share, they have contributed to introduce the framework of microcredit by cooperation with other social organizations and to establish the consultation outlets for the people in difficulties. There are three reasons behind it:(1)they still have spirit of mutual aid,(2)they have strong connection with regional and social organizations as their members, and(3)there is institutional environment where no regulation of transaction volume with non−members exists.