That's precisely the point of the monetary reform I proposed. If co-op banks were given money creation powers, then you could use them for this. All of its policies will have to be more or less the same as other banks, including the interest it charges on comparable loans. Regulators have a long history of being co-opted by the industry they regulate.
Regulation is to protect the public interest from abuse.
If the public, customers, stakeholders etc. WERE the owners, then the need for regulations would be lessened. Some of the most poorly run public utilities are presently co-ops. I reside in Houston and have been in the past in the telephone business. The most poorly managed, inept telephone company in this area is East Texas Telephone Co-op.