Bankomunales is an alternative finance model based on the creation of a communal bank with savings from the community involved, in which they become partners of the bank. This double condition of partner and client, allows them to have saving, credit and earning through dividends. They are non-officially regulated, while being legal, but promote the community to employ auto-regulation mechanisms.
Each Bankomunal decides what conditions are best for their members: the price of each share, what interest rate to charge, the time limit of repayment, the maximum credit members can receive, and who the members are. This allows the community the opportunity to adapt the methodology to their own reality. Interest rates for instance should take into account the local credit market, both from formal, legal and illegal alternatives such as money lenders. The time to return payments also will be linked to the community economic activity.