Inside the Sustainability Models of Islamic and Cooperative Banks: Similarities and Differences in Business Model Formula

The final objective of this study is twofold: firstly, to identify the similarities and differences between Islamic and cooperative banks; and secondly, to provide a robust argument for the sustainability business model formula. The comparison method used is based on the following items that qualify the business formula of Islamic banks and cooperative banks: guiding principles of banking activity, member ownership and governance structure, social responsibility, ethical identity, ESG attention, decision-making process, and business model. The paper contributes to the existing literature on the subject by offering a novel argument and set of conclusions to help define the sustainable business model further. In addition, the paper provides a few suggestions for policymakers committed to defining rules, guiding principles, values, or organizational elements in sustainable finance.