Community banking models

Community banking is a non-traditional form of money-lending.[1] Unlike banks or other classic lending institutions, the funds that community banks lend to borrowers are gathered by the local community itself. This tends to mean that the individuals in a neighborhood or group have more control over who is receiving the capital and how that capital is being spent. This practice has existed in some form for centuries; in ancient Egypt, for example, when grain was often used as currency, local granaries would store and distribute the community’s food supply.[2] Since that time, a variety of community banking models have evolved.

  1. ^ Minsky, Hyman P. (March–April 1993). "Community development banks: An idea in search of substance". Challenge. 36 (2): 33–41. doi:10.1080/05775132.1993.11471653.
  2. ^ Gascoigne, Bamber. "Historyworld". History of Banking. Retrieved March 1, 2014.