Bond of association

Like solidarity lending, the common bond has since played an important role in facilitating the development of microfinance for poor people.

In modern financial systems, common bonds remain a key building block, especially for the strategic networks that underpin many of Europe’s co-operative banks.

The bond of association for Schulze-Delitzsche’s larger, more urban ‘people’s banks’ required all members to contribute substantial share capital.

Arguing that most farmers had too little cash to afford share capital, he maintained that the principle of unlimited joint liability was "indispensable in small districts".

Instead, it was needed "in order to prevent the Unions from excess, since it makes the administrative bodies conscious of their moral and material responsibilities.