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Encyclopedia > Credit union
Financial market
participants

Investors
There are two basic financial market participant catagories, Investor vs. ... Image File history File linksMetadata Size of this preview: 800 × 600 pixelsFull resolution (2816 × 2112 pixel, file size: 2. ... The word investor may refer to: A person who makes investments Investor AB, a Swedish investment company institutional investor corporate investor This is a disambiguation page, a list of pages that otherwise might share the same title. ...

Speculators
speculation
Speculation is the buying, holding, and selling of stocks, commodities, futures, currencies, collectibles, real estate, or any valuable thing to profit from fluctuations in its price as opposed to buying it for use or for income - dividends, rent etc. ... Speculation involves the buying, holding, and selling of stocks, bonds, commodities, currencies, collectibles, real estate, derivatives or any valuable financial instrument to profit from fluctuations in its price as opposed to buying it for use or for income via methods such as dividends or interest. ...

Institutional investors
Insurance companies
Investment banks
Hedge funds
Mutual funds
Pension funds
Private equity funds
Venture capital funds
Banks
Credit Unions
Trusts
Prime Brokers
An institutional investor is an investor who is an institution like a bank, insurance fund, retirement fund, or mutual fund manager. ... Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. ... Investment banks help companies and governments and their agencies to raise money by issuing and selling securities in the primary market. ... A hedge fund is an investment fund charging a performance fee and typically open to only a limited range of investors. ... A mutual fund is a form of collective investments that pools money from many investors and invests their money in stocks, bonds, short-term money market instruments, and/or other securities. ... This article does not cite any references or sources. ... A private equity fund is a collaboration of funds that directs a private companys or individuals equity, either in the stock market or in real estate. ... Venture capital is a general term to describe financing for startup and early stage businesses as well as businesses in turn around situations. ... “Banker” redirects here. ... A trust company has been referred to as a near-bank; while technically it differs from a bank in mandate and services offered, it also provides banking services such as chequing accounts, savings and loans, investments and credit cards. ... Prime Brokerage is a service sold by investment banks to hedge funds. ...


Finance series
Financial market
Participants
Corporate finance
Personal finance
Public finance
Banks and Banking
Financial regulation
This article does not cite any references or sources. ... In economics a financial market is a mechanism that allows people to easily buy and sell (trade) financial securities (such as stocks and bonds), commodities (such as precious metals or agricultural goods), and other fungible items of value at low transaction costs and at prices that reflect efficient markets. ... There are two basic financial market participant catagories, Investor vs. ... Corporate finance is an area of finance dealing with the financial decisions corporations make and the tools and analysis used to make these decisions. ... Personal finance is the application of the principles of finance to the monetary decisions of an individual or family unit. ... Public finance (government finance) is the field of economics that deals with budgeting the revenues and expenditures of a public sector entity, usually government. ... “Banker” redirects here. ... Financial supervision is government supervision of financial institutions by regulators. ...

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A credit union is a cooperative financial institution that is owned and controlled by its members. Credit unions differ from banks and other financial institutions in that the members who have accounts in the credit union are the owners of the credit union. For cooperative as used in biochemistry, see cooperative binding. ... In financial economics, a financial institution acts as an agent that provides financial services for its clients. ... “Banker” redirects here. ...


Credit union policies governing interest rates and other matters are set by a volunteer Board of Directors elected by and from the membership itself. Only a member of a credit union may deposit money with the credit union, or borrow money from it. As such, credit unions have historically marketed themselves as providing superior member service and being committed to helping members improve their financial health. An interest rate is the price a borrower pays for the use of money he does not own, and the return a lender receives for deferring his consumption, by lending to the borrower. ... This article does not cite any references or sources. ... Various denominations of currency, one form of money Money is any good or tokens that functions as a medium of exchange that is socially and legally accepted in payment for goods and services and in settlement of debts. ... A loan is a type of debt. ...


Credit unions may be viewed as non-profit organizations, or alternatively as for-profit enterprises charged with making a profit for their members (who receive any profits earned by the cooperative in the form of dividends paid on savings, which are taxed as ordinary income, or reduced interest rates on loans). This debate reflects credit unions' unusual organizational structure, which attempts to solve the principal-agent problem by ensuring the owners and the users of the institution are the same people. In any case, credit unions generally cannot accept donations and must be able to prosper in a competitive market economy. A dividend is the distribution of profits to a companys shareholders. ... For other senses of this word, see interest (disambiguation). ... In economics, the principal-agent problem treats the difficulties that arise under conditions of incomplete and asymmetric information when a principal hires an agent. ...


Credit unions typically pay higher dividend (interest) rates on shares (deposits) and charge lower interest on loans than banks.[1]. Credit union revenues (from loans and investments) do, however, need to exceed operating expenses and dividends (interest paid on deposits) in order to maintain capital and solvency. For other senses of this word, see interest (disambiguation). ... This article does not cite any references or sources. ...


Credit unions offer many of the same financial services as banks, including share accounts (savings accounts), share draft (checking) accounts, credit cards, and share term certificates (certificates of deposit) and online banking. The passbook is the traditional document to keep track of earnings in a savings account Savings accounts are accounts maintained by commercial banks, savings and loan associations, credit unions, and mutual savings banks that pay interest but can not be used directly as money (by, for example, writing a cheque). ... Includes demand deposits, ATS, NOW, and other checkable deposits. ... Credit cards A credit card is a system of payment named after the small plastic card issued to users of the system. ... A certificate of deposit or CD is, in the United States, a time deposit, a familiar financial product, commonly offered to consumers by banks, thrift institutions, and credit unions. ... Online banking (or Internet banking) is a term used for performing transactions, payments etc. ...


Credit unions exist in a wide range of sizes, ranging from volunteer operations with a handful of members to institutions with several billion dollars in assets and hundreds of thousands of members.

Contents

Membership restrictions

Governmental regulatory agencies require that credit unions restrict their membership to defined segments of the population, such as people who live, work, worship, or attend school in a well-defined geographic area; employees of specific companies or trades; members of specific non-profit groups (alumni associations, conservation or other advocacy organizations, lodges, churches, or the like); or a particular occupational group (teachers, doctors, etc.) In the U.S., this is referred to as a credit union's "field of membership." Internationally it is referred to as the 'common bond' or 'bond of association'. The ‘bond of association’ or ‘common bond’ is a basic building block of credit unions and co-operative banks. ...


Mergers of smaller credit unions with disparate membership bases often result in a credit union with a wide variety of ways to qualify to join; thus, a credit union may have a much broader "field of membership" than that credit union's name would imply.


Credit unions generally follow the principle of "once a member, always a member," which allows current credit union membership to continue even if the individual would no longer qualify to be a member (such as having changed professions or moved outside the area). However, if the member closes his/her account, they may or may not be eligible to rejoin, depending on the credit union's policies and government regulations.


Credit Unions may be chartered to serve a specific employee group, but may, for example in the USA, be allowed to change their charter to a "Community Charter". Such a charter allows them to not only serve the original employee group, but now anyone who lives, works, worships, or attends school within a geographical field of membership. In the US, this field of membership can then be expanded with the approval of the National Credit Union Administration, and similar options are available in some other countries. It has been suggested that this article be split into multiple articles accessible from a disambiguation page. ...


Credit Union Leagues and Associations

Part of the series on
Cooperatives
Types of Cooperatives

Agricultural cooperative
Building cooperative
Credit union
Consumers' cooperative
Cooperative banking
Cooperative federation
Cooperative union
Cooperative wholesale society
Housing cooperative
Mutual insurance
Retailers' cooperative
Social cooperative
Utility cooperative
Worker cooperative
For cooperative as used in biochemistry, see cooperative binding. ... A cooperative (also co-operative or co-op) comprises a legal entity owned and democratically controlled by its members, with no passive shareholders. ... Building co-operatives are co-operative housing corporations where individuals or families work together to directly construct their own homes on a co-op basis. ... A consumers cooperative is a business owned by its customers for their mutual gain. ... This article, image, template or category belongs in one or more categories. ... A Co-operative Federation is a Co-operative society in which all members are, in turn, Co-operatives. ... A Co-operative Union is Co-operative Federation (that is, a Co-operative in which all the members are Co-operatives). ... Co-operative Group - Wikipedia /**/ @import /w/skins-1. ... A housing co-operative is a legal entity, usually a corporation, that owns real estate, one or more residential buildings. ... Mutual insurance is a type of insurance where those protected by the insurance (policyholders) also own the organization. ... A retailers cooperative or consumer cooperative is a business entity which employs economies of scale on behalf of its members to get discounts from manufacturers and to pool marketing. ... An Italian social cooperative is a particularly successful form of multi-stakeholder cooperative, of which some 7,000 exist. ... A utility cooperative is a type of cooperative that is tasked with the delivery of a public utility such as electricity or telecommunications to its members. ... A worker cooperative is a cooperative owned and operated by its worker-owners. There are no outside, or consumer owners, in a workers cooperative - only the workers own shares of the business. ...

The Rochdale Principles

Voluntary and open membership
Democratic member control
Member economic participation
Autonomy and independence
Education, training, and information
Cooperation among cooperatives
Concern for community
The Rochdale Principles are a set of ideals for the operation of cooperatives. ... The first of the Rochdale Principles states that Co-operative societies must have an open and voluntary membership. ... The second of the Rochdale Principles states that Co-operative societies must have democratic member control. ... Member economic participation is one of the defining features of [[Cooperatives|Co-operative Soceities], and constitutes the third Rochdale Principle in the ICAs Statement on the Co-operative Identity. ... The fourth of the Rochdale Principles states that Co-operative societies must be autonomous and independent. ... The purpose of Co-operative education and Co-operative studies, according to the ICAs Statement on the Co-operative Identity, is that Co-operative societies provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their co-operatives. ... A Co-operative Federation is a Co-operative society in which all members are, in turn, Co-operatives. ... The seventh of the Rochdale Principles states that Co-operative societies must have concern for their communities. ...

Political and Economic Theories

Anarchism
Cooperative federalism
Owenism
Socialism
Social enterprise
Socially responsible investing Co-operative economics is a field of economics, socialist economics, Co-operative studies, and political economy, which is concerned with co-operatives. ... Anarchism is a political philosophy or group of doctrines and attitudes centered on rejection of any form of (compulsory) government (cf. ... Co-operative Federalism is a school of thought in the field of Co-operative economics. ... Owenism is a term used to represent the Utopian socialist philosophy of Robert Owen, and deriviations thereof. ... Socialism refers to a broad array of ideologies and movements which aim to improve society through collective and egalitarian action; and to a socio-economic system in which property and the distribution of wealth are subject to control by the community. ... Social enterprises are organizations which trade in goods or services, and link that trade to a social mission. ... Socially responsible investing describes an investment strategy which combines the intentions to maximize both financial return and social good. ...

Key Theorists

Robert Owen
William King
The Rochdale Pioneers
G. D. H. Cole
Charles Gide
Beatrice Webb
Friedrich Raiffeisen
David Griffiths
Robert Owen (May 14, 1771 – November 17, 1858) was a Welsh socialist and social reformer. ... Dr. William King (1786-1865) was a British physician and philantropist from Brighton. ... The Rochdale Society of Equitable Pioneers, founded in 1844, is usually considered the first successful co-operative enterprise, forming the basis for the modern co-operative movement. ... George Douglas Howard Cole (September 25, 1889 - January 14, 1959) was an English journalist and economist, closely associated with the development of Fabianism. ... Charles Gide (1847–1932) was a French economist and notable ideologue of the cooperative movement in the first third of the 20th century. ... Beatrice Webb Martha Beatrice Potter Webb (January 2, 1858 - April 30, 1943) (also called Beatrice Webb) was a British socialist, economist and reformer, usually referred to in the same breath as her husband, Sidney Webb. ... Friedrich Wilhelm Raiffeisen (May 3, 1818, Hamm - May 11, 1888, Heddesdorf, currently known as Neuwied, Germany) was a German cooperative leader. ... David Griffiths is a Co-operative economist, who has contributed a number of books and articles on the subject of unemployment,[1] the history of Victorias Co-operative movement,[2] and social care co-operatives[3] amongst other subjects. ...

Organizations

List of cooperatives
List of cooperative federations
International Co-operative Alliance
Co-operative Party List of co-operative enterprises: // Canada Accessible Technologies (Westmount, NS) [1] Baseline Type and Graphics (Vancouver, BC) [2] BeaDazzled Bead Shop (Guelph, ON) [3] The Big Carrot (Toronto, ON) [4] Calgary Alternative Transportation Co-operative [5] Canadian Travel Co-op (Burlington, ON. Regina, SK) CFRO-FM (Vancouver, BC) [6] Circle... This is a list of Co-operative Federations. ... The International Co-operative Alliance (ICA) is a non-governmental association representing co-operatives and the co-operative movement worldwide. ... This article is about the British political party. ...

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Credit unions in the United States have traditionally employed a state/national trade association relationship that aligns credit unions with state “Credit Union Leagues” followed by national affiliation with the Credit Union National Association (CUNA) of Madison, Wisconsin. Federal credit unions may also be members of the National Association of Federal Credit Unions (NAFCU). The Credit Union National Association (more popularly known as CUNA) is a trade association for credit unions in the United States. ... Nickname: Location of Madison in Dane County, Wisconsin Coordinates: , Municipality City Incorporated 1848 Government  - Mayor Dave Cieslewicz Area  - City 219. ...


The biggest UK Credit Union trade association is the Association of British Credit Unions Limited, more commonly known as Association of British Credit Unions, ABCUL.


Corporate credit unions

The majority of credit unions are known as natural-person credit unions, and provide service to individual consumers. Corporate credit unions (also known as central credit unions in Canada) also exist, but instead serve the needs of credit unions with operational support, funds clearing tasks as well as product and service delivery. In effect, they serve as a credit union's credit union. The largest corporate credit union in the United States is U.S. Central Credit Union of Lenexa, Kansas, which serves as a central clearing house for corporate credit unions. The two largest corporate credit unions that serve only natural-person credit unions are Western Corporate Credit Union (WesCorp) in San Dimas, California and Southwest Corporate Federal Credit Union in Plano, Texas. US Central Credit Union logo. ... Lenexa is a city in Johnson County, Kansas and a suburb of Kansas City, Missouri. ... Location of San Dimas, California San Dimas is a city located in Los Angeles County, California. ... Nickname: Location within the state of Texas Coordinates: , County Collin County Government  - Mayor Pat Evans Area  - City 185. ...


Scottish Credit Unions are represented by the Scottish League of Credit Unions (SLCU) which has headquarters in Glasgow.


History

Main article: credit union history

Credit union history dates to 1864, when Friedrich Wilhelm Raiffeisen founded the first credit union in Heddesdorf (currently known as Neuwied) in Germany. By the time of his death in 1888 credit unions had spread to Italy, France, the Netherlands, England and Austria, among other nations. The Raiffeisen name is still used by Raiffeisenbank, the largest banking group in Austria (with subsidiaries throughout Central and Eastern Europe), Rabobank (Netherlands) and similarly-named agricultural credit unions in Germany. Credit unions emerged to meet the demand for banking services from professional, middle class and poorer people who were not being served by banks. ... Friedrich Wilhelm Raiffeisen (May 3, 1818, Hamm - May 11, 1888, Heddesdorf, currently known as Neuwied, Germany) was a German cooperative leader. ... Missing image Map of Germany showing Neuwied Neuwied is a town in the Rhineland-Palatinate in Germany, lies on the right bank of the Rhine, 8 miles below Coblenz, on the railway from Frankfurt am Main to Cologne. ... This article does not cite any references or sources. ... Rabobank is a Dutch cooperative banking institution with offices all over the world, although primarily in the Netherlands. ...


The first credit union in North America, the Caisse populaire de Lévis in Québec, Canada, began operations on Jan. 23rd, 1901 with a ten cent deposit. Founder Alphonse Desjardins, a reporter in the Canadian parliament, was moved to take up his mission in 1897 when he learned of a Montrealer who had been ordered by the court to pay nearly $5,000 in interest on a loan of $150 from a moneylender. Drawing extensively on European precedents, Desjardins developed a unique parish-based model for Québec: the caisse populaire. Lévis (officially Ville de Lévis) is a city in eastern Quebec, Canada. ... There have been two people, contemporaries from Quebec, named Alphonse Desjardins: Alphonse Desjardins, founder of Mouvement Desjardins credit unions Alphonse Desjardins, mayor of Montreal and Canadian cabinet minister This is a disambiguation page — a navigational aid which lists other pages that might otherwise share the same title. ...


In the United States, St. Mary's Bank Credit Union of Manchester, NH holds the distinction as the first credit union. Assisted by a personal visit from Alphone Desjardins, St. Mary's was founded by French-speaking immigrants to Manchester from Quebec in November 1908. Manchester is the largest city in New Hampshire and the largest city of northern New England, an area composed of Vermont, New Hampshire and Maine. ... A Francophone is a person who speaks French natively or by adoption (i. ... Immigration is the act of moving to or settling in another country or region, temporarily or permanently. ... Motto: Je me souviens (French: I remember) Capital Quebec City Largest city Montreal Official languages French Government - Lieutenant-Governor Pierre Duchesne - Premier Jean Charest (PLQ) Federal representation in Canadian Parliament - House seats 75 - Senate seats 24 Confederation July 1, 1867 (1st) Area  Ranked 2nd - Total 1,542,056 km² (595... 1908 (MCMVIII) was a leap year starting on Wednesday (link will display the full calendar). ...


Pierre Jay, a central banker and Edward Filene, a Bostonian merchant, were instrumental in establishing enabling legislation in Massachusetts in 1908. Pierre Jay was the first chairman of the Federal Reserve Bank of New York He graduated from Yale University in 1892, and was a member of Skull and Bones, one of the most well known of the secret societies based at Yale University. ... Edward Albert Filene (September 3, 1860-1937), born in Salem, Massachusetts, was an American business man and philanthropist. ... 1908 (MCMVIII) was a leap year starting on Wednesday (link will display the full calendar). ...


Filene also created the Credit Union National Extension Bureau, the forerunner of the Credit Union National Association, which was formed as a confederation of state leagues at a meeting in Estes Park, Colorado in 1934. Attendees at the meeting included Dora Maxwell who would go on to help establish hundreds of credit unions and programs for the poor in her lifetime and Louise Herring, whose work to form credit unions and ensure their safe operation earned the title of “Mother of Credit Unions” in the United States. The Credit Union National Association (more popularly known as CUNA) is a trade association for credit unions in the United States. ... Estes Park is a town in Larimer County, Colorado (USA) on the Big Thompson River. ... Year 1934 (MCMXXXIV) was a common year starting on Monday (link will display full 1934 calendar) of the Gregorian calendar. ... Dora Maxwell was an early credit union pioneer in New York state. ... (Born 20 September 1909-Died 02 November 1987) . Ohio native Louise McCarren Herring is recognized as one of the pioneer leaders of the non-profit cooperative credit union movement in the United States. ...


In the same year, Congress passed the Federal Credit Union Act, which permitted credit unions to be organized anywhere in the United States. The legislation allowed credit unions to incorporate under either state or federal law, a system of dual chartering that persists today. In 1934, the U.S. Congress passed the Federal Credit Union Act, which President Roosevelt signed into law. ... This article, image, template or category should belong in one or more categories. ...


Early credit unions were viewed as the “poor man’s bank” because they would extend credit to people who otherwise would not qualify for credit. However, today, credit unions are no longer lacking in prestige and are used widely, for example, among university employees and large telecommunications corporations.


In the United States bank trade associations are opposed to the tax-free structure on earnings that credit unions enjoy and the American Bankers Association has identified the revocation of credit unions' tax-free status as topping its political agenda in 2004 and 2005.[citation needed] However, bank holding companies and their affiliates aggressively compete to provide services to credit unions through their ATM networks, corporate checking accounts, and Certificate of Deposit programs. The American Bankers Association (ABA) is a free-trade and professional association that promotes and advocates issues important to the banking industry in the United States. ... Outdoor ATMs may be free-standing, like this kiosk, or built into the side of banks or other buildings An automatic teller machine, automated teller machine (ATM) or cash machine is an electronic device that allows a banks customers to make cash withdrawals and check their account balances without...


United Kingdom

In the United Kingdom Credit Unions are regulated by the Financial Services Authority, or FSA. UK credit unions are classified under two types, type 1 are the smaller CUs while type 2 are larger. From November 2006 many type 2 CUs will be offering their members debit card accounts. For the first time this will enable CU members to obtain funds from any Link ATM. UK CUs will not be offering cheques as these are generally being phased out for many UK financial transactions. Many CUs are offering most of the services available from other financial institutions such as direct debits and standing orders. The Financial Services Authority (FSA) is an independent non-departmental public body and quasi-judicial body that regulates the financial services industry in the United Kingdom. ... FSA stands for: Farm Security Administration - United States Farm Service Agency - United States Fellow of the Society of Actuaries Fellow of the Society of Antiquaries Financial Services Authority - British regulator Financial Services Agency - Japanese regulator Finite State Automaton Flexible Spending Account - employee benefit plan Food Standards Agency - British Forward Sortation... An NCR Personas 85-Series interior, multi-function ATM in the USA Smaller indoor ATMs dispense money inside convenience stores and other busy areas, such as this off-premise Wincor Nixdorf mono-function ATM in Sweden. ... A check or cheque (borrowed from Persian چك Chek) is a document instructing a financial institution to pay a specific amount of a specific currency from a specific demand account held in the maker/depositors name with that institution. ... Direct debit is a payment method available in Japan and some European countries which allows an organisation to instruct their bank to collect varying amounts directly from customers accounts. ... A standing order is a general order of indefinite duration. ...


Currently there is a government financial initiative mainly being operated by Credit Unions to bring financial services to the disadvantaged of society. One aim is to significantly reduce the influence of door step lenders where a £300 loan over 30 weeks involves paying back around £450. A credit union loan would require paying back around £325. The First Provincial Bank of Taiwan in Taipei, Republic of China was formerly the central bank of Taiwan Province and issued the New Taiwan dollar. ...


North American statistics

Credit unions are called caisses populaires in French speaking communities of Canada. This one is located in Shediac, New Brunswick.
Credit unions are called caisses populaires in French speaking communities of Canada. This one is located in Shediac, New Brunswick.

Canada has the highest per capita use of credit unions in North America, with more than a third of the population enrolled in one. (ref: World Council of Credit Unions) They are concentrated in Quebec, where they are known as caisses populaires (people's banks), and on the Western prairies. As of Dec. 31 2005 there were 568 member caisses and 5.4 million retail members in the Caisses Populaires Desjardins federation. According to data from Credit Union Central of Canada on the same date there were 10.7 million retail members controlling CAD $180 billion in assets across all of Canada. Image File history File linksMetadata Download high-resolution version (1934x1204, 1723 KB) Self made photo, cropped, straightened and improved for contrast. ... Image File history File linksMetadata Download high-resolution version (1934x1204, 1723 KB) Self made photo, cropped, straightened and improved for contrast. ... The worlds largest lobster sculpture located in Shediac Shediac (46°13′N 64°32′W, AST) is a town located in Shediac Parish, Westmorland County, New Brunswick, Canada on the Northumberland Strait, about 20 km from the city of Moncton. ... Motto: Je me souviens (French: I remember) Capital Quebec City Largest city Montreal Official languages French Government - Lieutenant-Governor Pierre Duchesne - Premier Jean Charest (PLQ) Federal representation in Canadian Parliament - House seats 75 - Senate seats 24 Confederation July 1, 1867 (1st) Area  Ranked 2nd - Total 1,542,056 km² (595... The Desjardins Group (or Mouvement des caisses Desjardins in French) is the largest association of credit unions in North America. ...


In the United States, credit unions have 86 million members, which is 43.47% of the economically active population[2]. In the US, federal credit unions may apply to the National Credit Union Administration for Low-Income Credit Union or LICU status. To qualify for LICU status, the majority of the credit union's membership meet specific requirements in order to be considered "low-income". This LICU status allows the credit unions to benefit from certain NCUA programs to enhance its capacity to serve underserved populations who may otherwise lack access to credit or other financial services. In addition, some state regulators also provide for similar low-income designations.


Unlike banks, which were caught redlining underserved areas in the 1970s, credit unions are not subject to federal "community reinvestment" requirements -- essentially because credit unions, by their nature and mission of "people helping people," already meet the financial needs of a broad spectrum of people that fall within their fields of membership, and play an active role in community development and growth. Because of that, credit unions have successfully lobbied to exempt themselves from the (U.S. federal) Community Reinvestment Act, the law that forces banks to provide services in low-income areas. For the automotive term, see redline. ...


As of the end of 2005, the National Credit Union Administration (NCUA) insured more than $515 billion in deposits at 8,695 nonprofit cooperative US credit unions. For comparison, the Federal Deposit Insurance Corporation (FDIC) insured more than $3,000 billion in deposits at 8,900 banks and thrift institutions. The NCUA and the FDIC are both independent federal agencies backed by the full faith and credit of the US government. The National Credit Union Administration (NCUA) is the United States federal agency that charters and supervises federal credit unions and insures savings in federal and most state-chartered credit unions across the country through the National Credit Union Share Insurance Fund (NCUSIF), a federal fund backed by the full faith... The FDIC logo The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation created by the Glass-Steagall Act of 1933. ...


Credit Unions and Banks

Tension has always existed between credit unions and banks. When credit unions were first organizing in North America in the early twentieth century, the banking industry was opposed, remaining so ever since. These tensions have only been exacerbated as many credit unions have grown, expanded their fields of membership to include large communities and whole states, and in the eyes of some, are indistinguishable from banks[3].


Due to their status as not-for-profit financial institutions, credit unions in the United States are exempt from federal and state income taxes (but, not from employment or property taxes, among others). Additionally, credit union members pay income taxes on dividends earned through financial participation in the credit union; this is similar to the taxation structure enjoyed by many banks incorporated under Chapter S.



Credit unions maintain that no matter their size or field of membership, the fact that they are owned by their members and not shareholders makes them fundamentally different from banks, and therefore continuing to deserve their non-profit, tax-exempt status.[4][weasel words]


References

  1. ^ [1]
  2. ^ 2005 statistical report from the World Council of Credit Unions
  3. ^ Credit Union Competition, from the American Bankers Association web page regarding industry issues.
  4. ^ Why Credit Unions are tax exempt, from the governmental affairs section of CUNA's web site.
  • Ian MacPherson. Hands Around the Globe: A History of the International Credit Union Movement and the Role and Development of the World Council of Credit Unions, Inc. Horsdal & Schubart Publishers Ltd, 1999.

See also

This article, image, template or category belongs in one or more categories. ... The National Credit Union Administration (NCUA) is the United States federal agency that charters and supervises federal credit unions and insures savings in federal and most state-chartered credit unions across the country through the National Credit Union Share Insurance Fund (NCUSIF), a federal fund backed by the full faith...

External links


  Results from FactBites:
 
Fool.com: Fool Banking, Are Credit Unions Foolish? (954 words)
Credit unions are run not-for-profit, and thus are able to deliver substantially higher rates than banks for the same deposits.
Because credit unions exist to serve their members best rather than to make the biggest profit, the service at a credit union is generally considered superior to that given by banks.
Credit unions are known for providing better financial guidance and better financial education to their members than banks are to their customers.
  More results at FactBites »

 
 

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