U.S. credit unions have another significant difference from the credit cooperatives of farmers: the first have major proportion of short-term loans, the second - long and mostly in real estate. The difference between credit unions and banks is clearly is apparent when comparing the structure of assets and liabilities of credit unions and banks. When organizing the credit union it is important that people know each other and know the extent to which each of them is trustworthy. The first credit union in the United States was founded in 1909. by the group of Franco-American Catholics in Manchester, New Hampshire, and was called "Cooperative Credit Association of St. Mary. " Credit unions also differ from the traditional consumer cooperatives.
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When organizing the credit union it is important that people know each other and know the extent to which each of them is trustworthy. The first credit union in the United States was founded in 1909. by the group of Franco-American Catholics in Manchester, New Hampshire, and was called "Cooperative Credit Association of St. Mary. " The difference between credit unions and banks is clearly is apparent when comparing the structure of assets and liabilities of credit unions and banks.
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Principles of cooperative democracy and interaction were adequate to the purposes for which people joined credit unions. To increase the number of credit unions in 1979 was adopted the corresponding law that serves as the legal basis of their activity. Historically, credit unions have grown from the experience of credit cooperatives, but they took the experience of organizations of mutual aid of citizens by moving methods of social self-protection from labor and toward consumption. Over 30% of the assets of credit unions are investments in government securities, certificates of deposit of banks and savings loan associations, as well as in the parent credit unions, and other risk-free investments. Since the early 80's started the process of consolidation of credit unions, leading to a decrease in their number with a simultaneous increase in the total number of members. As of the January 1, 2012 the national associations and confederations unite more than 196 million members participating in the 51,013 credit unions in 100 countries. Income received by the credit union shall be distributed among the shareholders or spent for the depreciation of services, that is, are the most effective means of meeting the needs of shareholders.