EN
The article presents selected aspects of local development and cooperation in theory and practice, between a commune and banks. Participation in local development depends on kind of entity and there are some differences. On the one hand local authorities are the subject which are obliged to look after local development but on the other hand commune hasn’t got enough money for all of the tasks, it is supposed to do. Financial institutions play very important role in improving development by financial supporting local entities in this development. The results of research proves that local development is one of the most important issues between banks and local governments cooperation.