Like the credit cooperatives, credit unions form associations of a higher level, which are called corporate credit unions. Credit unions encourage savings of citizens, setting compensation payments (interest) on savings and provide from these savings loans to their members. First central bank of credit unions appeared in 1876. Credit unions began to appear rapidly in many European countries. The relationship of shareholders with credit union are not client-based, they are co-operative, based on different principles and standards, in particular, on the principles of the law of obligations. International cooperation has been particularly felt since the days when Alphonse Desjardins began the activity on development of credit union movement in North America. In some cases, the initiators of credit unions can be trade unions, associations such as social support centers and others. Credit unions are financial institutions, financial cooperatives of citizens, and in this capacity they are above all associations of people, not unification of capitals, which is typical, for example, for public companies. Credit Union - one of the most attractive financial institutions for the public being a non-profit alternative to banks.
Credit Union Location in Washington
First central bank of credit unions appeared in 1876. Credit unions began to appear rapidly in many European countries. The relationship of shareholders with credit union are not client-based, they are co-operative, based on different principles and standards, in particular, on the principles of the law of obligations. Credit unions encourage savings of citizens, setting compensation payments (interest) on savings and provide from these savings loans to their members.
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In recent decades, many credit unions began to resort to such form of service as Activity of the credit union consists of organizing mutual financial assistance by meeting the needs of its members in the services of saving and obtaining loans. Credit unions encourage savings of citizens, setting compensation payments (interest) on savings and provide from these savings loans to their members. A potential new member of a credit union must submit a recommendation of shareholders in which the referee becomes a warrant of a future member of the credit union. 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. Income derived from the provision of services to its members, does not become the profit of credit union and is distributed among its members in proportion to their savings. Credit unions appeared in England in the 19th century. In 1844 a group of workers from Rochdale established the first cooperative. Shareholders in corporate organizations are basic credit unions, besides the same union can be a shareholder of several corporate organizations. 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. Unlike banks credit unions limit their activities to a closed circle of people.