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. Among the U.S. credit unions, there are three groups that differ in terms of assets, shareholders, and business services. 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. Typically new members of the credit union become citizens having suretyship or recommendations from their friends - members of the credit union. Credit union as a consumer cooperative operates on the principles of equality of all its members.
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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. Typically new members of the credit union become citizens having suretyship or recommendations from their friends - members of the credit union. Among the U.S. credit unions, there are three groups that differ in terms of assets, shareholders, and business services.
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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. Credit cooperatives and credit unions exist in many different forms. The main differences relate to the nature of the membership and the opening of a credit institution. Credit union is created by a group of members who pursue a common interest. Agreeing to make regular contributions, they create a fund from which can borrow money for investments and replenishment of working capital at favorable interest rates. 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 relationship between credit unions and shareholders arise from the membership and are not customer relationship. In the case of default the shareholder - individual will respond with its property and, in addition, is jointly and severally liable with the credit union's commitments. Some credit unions are closed, serving only their members. However, the more and more popularitywin cooperatives of open type. Credit union as a consumer cooperative operates on the principles of equality of all its members.