Reasons for the delay of cooperative banks in Greece.

The appearance of credit cooperatives took place in the second half of 19th century in Germany. It coincides chronologically with the emergence of capitalist relations of production that began to prevail in Europe. They pursue to solve the social and financial problems which emerge due to this prevalence. Farmers, artisans and microcraftsmen need funds so as to be competitive as conditions require. So turning to commercial banks they cannot find sufficient funding. All this leaves a gap which is filled by credit cooperatives helping economically weak citizens to reassure the necessary funds so as to continue their operations and decent livelihood. While in Europe, at the end of 19th century and the beginnings of 20th century, the credit cooperatives prevail, they just begin to emerge in cities and villages of Greece. During the second half of 19th century in Greece, the status and the infamous land redistribution remain pending. Farmers work the land that does not belong to them. Their pay is minimal and the profits from their work are reaped by big landowners. Under these circumstances there was no incentive for the development of a culture solidarity and mutual assistance among farmers. Thus the essential components for the creation of cooperatives are missing. At the same time, in the cities, the urban class has not been formed, which would indicate the prevalence of the capitalist relations of production. The time is not right for the creation of cooperatives in Greece. Nevertheless, on 25th of June in 1900, the credit cooperative of craftsmen of Lamia is established there, and it is considered to be the first urban credit cooperative established in Greece. This is the result of the effort of a small group unknown people, and not the creation of (social and economic) conditions. After all, nothing of the sort exists in the rest of Greece for many years after that. As a cause of this under-execution we must mention, the complete lack of legal framework for cooperative credit, until 1915 and the adopting the law 602. This law however, was referred generally to cooperatives and contributed to the creation of agricultural credit cooperatives. However, their main mission was not the execution of credit procedure and operations but how to carry them out. This fact did not make them self-sufficient to become cooperative banks later on. In many European countries the cooperative banks have their roots in rural sector. That was the perfect breading ground for them to practice the rural credit. The agricultural credit in Greece was handed over initially through the state to the National Bank of Greece and after the establishment of the Agricultural bank of Greece in 1929 it passed to it. The complete control of Agricultural credit by banks of public sector in combination with the dominant culture did not leave room for the establishment and operation of credit cooperatives that would be addressed to the largest part of Greek population which was the farmers. All mentioned above explain the under-execution of the development of institutionbuilding, concerning the credit cooperatives in Greece and subsequently the cooperative banks. [ABSTRACT FROM AUTHOR]