ABSTRACT
Based on studies of the governance of commons, this chapter analyses how organisations within the solidarity finance movement and community banks sustain democratic governance within their own organisations, using the experience of Ilhamar Bank in Bahia, Brazil, as a case study. Ilhamar Bank provides an example of the usefulness of the commons concept in understanding and analysing democratic governance in solidarity financial services. This case characterises a type of financial commons, as it emphasises the collective action of community members and the political relevance of a decision-making structure based on community participation in governing a resource. The findings suggest that collective governance in solidarity finance organisations can be best explained in terms of the application of institutional governance rules concerning who is allowed to use resources, the congruence between the resources and the characteristics of the community and participation in the definition and enforcement of rules of use, including monitoring mechanisms and sanctions.
