First central bank of credit unions appeared in 1876. Credit unions began to appear rapidly in many European countries. Credit unions attract people in the first place by the opportunity to get cash loan (credit) - quickly and relatively inexpensively. The difference between credit unions and banks is clearly is apparent when comparing the structure of assets and liabilities of credit unions and banks. Credit unions of the open type are still controlled by their members, but at the same time provide services to people who are not its members (external customers). In some cases, the initiators of credit unions can be trade unions, associations such as social support centers and others.
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The difference between credit unions and banks is clearly is apparent when comparing the structure of assets and liabilities of credit unions and banks. Credit unions of the open type are still controlled by their members, but at the same time provide services to people who are not its members (external customers). Credit unions attract people in the first place by the opportunity to get cash loan (credit) - quickly and relatively inexpensively.
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Main share of credit unions assets is concentrated in loans (about 50%), while the share of consumer loans in commercial banks and finance companies active operations rarely exceeds 15%. The most common type of loans in credit unions are loans to purchase new and used cars (40%), followed by first mortgages and second mortgages (35%), about 10% are unsecured personal loans to member of unions and about 15% - are loans on credit cards and other loans. Credit unions historically formed as a special form of social support, initially taken upon themselves the social mission of protecting the interests of citizens in the field of financial services. Credit unions appeared in England in the 19th century. In 1844 a group of workers from Rochdale established the first cooperative. Is necessary that all shareholders of the credit union were members of a single community, would know each other well enough to enjoy mutual trust. The economic basis of credit unions - finances of a household. The main objective of the credit union - to ensure financial stability of a household, to ensure the priority of their shareholders' financial interests.