Various Credit Union Banking Laws

Credit Union Banking Laws

Credit unions are member owned and members controlled co-operative financial institutions. Most of the credit union provides a place to save and borrow money at suitable rates. It also offers other Credit union financial services to its members.

History

Credit unions began in Europe and established there to encourage savings by their members. In 1903, credit unions were established in Unites States. In 1934, Federal Credit Union Act was signed into law authorizing in all states. The main purpose of Federal Credit Union is to make credit available and promote through national system of non-profit. Credit union starts in 1990s and up to 21^st century, more than 85 million people were its members that has deposited their savings in credit union.

Membership

According to credit union law, credit union can be established into community. The community may be based on employment, where you work, work place etc. Credit union provides credit union solutions and financial services to the people who have a common relation or connections. For example, credit union can be established by a company for its employees or anyone who is related to the company. A member becomes an owner of the credit union by deposited small saving.

Management

Management of credit union and other banks are different. It is different from other banks because credit union members are in control of how it is managed by electing a volunteer board of directors. After this process, the board selects their officers and other supervisors for credit union management.

Deposit Guarantees

Both banks and credit unions keep members money safe. Almost all the deposited money is guaranteed by the National Credit Union Share Insurance Fund (NCUSIF). Safe deposited money of the members makes it sure that the credit union has NCUSIF.

Morale

According to credit union laws, when a credit union institution were establish by a community or company opposite to other banks, credit union creates an important benefit for its employees or members. Credit unions understand the needs of its members as compare to other banks.




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