Towards Broader Financial Empowerment for Cooperatives: Launch of a Campaign to Enhance Awareness in the Banking Sector

SadaNews - The Ministry of Labor / Cooperative Work Sector and the Rural Development Association, in collaboration with the Association of Banks in Palestine and the Palestinian Monetary Authority, funded by Oxfam, launched a campaign to enhance awareness about cooperative work in the banking sector, within the framework of the "Justice for All: Sustainable Trade and Value Chains" project. The campaign aims to contribute to resolving the issues faced by cooperatives in their dealings with banks and facilitating their access to banking services that enable them to fulfill their developmental role.

The workshop was inaugurated by Mr. Mohammed Rwashdeh, a representative of the cooperative work sector, who confirmed the Ministry of Labor’s ongoing support for all initiatives aimed at empowering cooperatives and strengthening their role in the national economy.

He pointed out that this workshop comes as part of raising awareness about the importance of the relationship between the cooperative and banking sectors, as it is a strategic relationship that contributes to achieving sustainable development.

He noted that the cooperative sector is considered one of the main pillars in the economic and social development system, due to its economic, social, and national dimensions, especially under the circumstances the Palestinian people are living in. He emphasized that the Ministry of Labor / Cooperative Work Sector continues its efforts to overcome the obstacles faced by cooperatives and to enable them to fulfill their developmental mission in enhancing local production, creating job opportunities, and reducing unemployment.

For his part, Mr. Iyad Zaitawy, Director of the Financial Stability Department at the Palestinian Monetary Authority, stressed the Authority's commitment to supporting cooperative work as a productive sector that contributes to enhancing financial inclusion and empowering marginalized groups to access banking services. He indicated that the Monetary Authority is working on developing policies and legislation that consider the specificities of cooperatives and aims to encourage banks to innovate financial tools and simplified banking services that fit the nature of this sector. He also affirmed that enhancing financial literacy among cooperatives is a pivotal step towards building a strong and sustainable cooperative sector.

In his address, Mr. Bashar Yassin, General Director of the Association of Banks in Palestine, confirmed that this campaign embodies the partnership between the banking sector and the cooperative work sector, aiming to address the challenges faced by cooperatives in managing their financial accounts. He explained that the Association of Banks seeks through this initiative to build a deeper understanding among banks of the nature of cooperatives and their specific needs, which contributes to facilitating their access to banking services and the necessary funding for their developmental projects. He affirmed that the partnership between the two sides is the optimal path towards supporting the national economy and achieving sustainable development.

Ms. Haneen Zidan, Chairwoman of the Rural Women Development Association, also highlighted the pivotal role played by the cooperative work sector in shedding light on the reality of cooperatives and thoroughly analyzing their needs, which contributed to identifying the main challenges they face and working on finding practical solutions and appropriate facilitation, especially in aspects related to banking procedures.

The workshop included a presentation of a policy paper presented by legal advisor Banan Tantour on the main issues in the banking and legislative environment facing cooperatives, in addition to showcasing live stories of women cooperatives through video clips that illustrate the impact of cooperative work in improving livelihoods and enhancing women's economic participation.

A discussion segment was also opened for attendees from associations, banks, and official institutions, who raised a number of observations and recommendations related to ways to improve the banking and legal environment in a manner that serves cooperative work.

The workshop concluded with a set of recommendations, most notably calling for the amendment of the legislative environment to enhance the cooperative work sector, facilitating banking service provision to cooperatives, generalizing to banks to ease service provision to cooperatives through the Palestinian Monetary Authority, and continuous communication with it to discuss and resolve the issues faced by cooperatives. It also included a call to reconsider the classification of cooperatives as high-risk clients in cooperation with concerned authorities, conducting awareness workshops on the difference between cooperatives and charitable associations for the banking sector, and emphasizing the necessity for cooperatives to adhere to the provisions of the law and financial system to ensure their sustainability and enhance their performance.

This campaign is a significant step towards building a bridge of trust and cooperation between cooperatives and the banking sector, contributing to enabling cooperatives to access funding and banking services flexibly, and enhancing their role as a key player in social and economic development in Palestine.