INTERNATIONAL EXPERIENCE IN IMPLEMENTING MODERN MODELS OF CREDIT COOPERATION

Abstract

Credit cooperation is an essential element of any state's financial and credit system, providing access to financial resources for population groups not served by traditional banking institutions. This article examines the international experience in the development of credit cooperation, identifying key challenges, patterns of establishment and functioning of this financial institution, as well as its role in the agricultural credit system. An analysis of the organizational, economic, and legal foundations of credit cooperatives in various countries was conducted, highlighting the primary approaches to their legal regulation. These include general legal regulation of cooperation, banking legislation, specific legislation for agricultural credit cooperatives, or the absence of state cooperative regulation. Special attention is given to the organization of agricultural credit cooperatives, their role in supporting farming enterprises, and the improvement of their operational mechanisms. The main principles of credit cooperatives, particularly those formulated by F. Raiffeisen and G. Schulze-Delitzsch, are explored, along with their evolution and adaptation to contemporary conditions. Different types of rural credit cooperatives − specialized, universal, and multifunctional − are analyzed, focusing on their impact on the development of rural economies and financial inclusion. International approaches to profit distribution, member participation in cooperative activities, and democratic management are examined, demonstrating how cooperative principles can be effectively integrated into modern financial systems. It was found that credit cooperation enhances financial accessibility, supports local economic development, and reduces social inequality. The authors emphasize the importance of introducing effective legal mechanisms for regulating credit cooperatives to ensure their long-term stability. The findings allow for the development of recommendations for improving national models of credit cooperation, taking into account the successful experiences of other countries, thus contributing to sustainable socio-economic development.