Why Are Credit Unions Better Than Banks

The Federal Deposit Insurance Corporation (FDIC) safeguards and promotes confidence in the United States financial system by insuring deposits in banks, identifying, examining, and addressing risks, and by limiting the effect on the economy and the financial system when a bank fails. An independent agency of the federal government, the FDIC was formed in response to bank failures that happened in the 1920s and 1930s. The FDIC employs more than 7,000 people and is headquartered in Washington, D.C., but conducts most of its business in six regional offices, and in offices around the country. The FDIC is managed by a Board of Directors; five individuals appointed by the President and confirmed by the Senate, with no more than three being from

As a result, credit unions are more personal than banks are, and it is clear that they care about your finances. When you walk into a credit union, it is likely that you are greeted by someone you know, and it is usually a speedy event. Also, since they are owned and operated by the members, the members get a say in the credit union's decisions. Credit unions put the members first, and don't have the main goal of making a profit.

Throughout history the Canadian and American banking systems have always taken separate approaches to the financial sector. There are many factors that influence the differences between the banking systems, some of which including their banking regulations, customer base and the chosen style of banking. All the factors presented have influenced the results of the banking sectors in both countries. Both systems have pros and cons, however the argument presented will reflect and support the benefits and success of the Canadian banking system and its ability to support the Canadian economy throughout the country’s history.

In 2012, I accepted a position at the Wisconsin Credit Union League (WCUL) as a Compliance Specialist. The WCUL (or “The League”) is a dues-supported trade association for Wisconsin credit unions that are cooperatively owned by more than 2.7 million members. The primary purpose of the organization is to serve Wisconsin credit unions by promoting the “credit union difference” through advocacy, education, and public service. However, The League also serves as a non-profit organization promoting the wellness of credit unions and the communities in which they serve. This includes, but is not limited to: promoting credit union development, educating credit union staff and volunteers, promoting financial literacy, and supporting the overall credit union system in times of need. Respectively, being employed on the profit-side of the organization is not only critical to The League, but the Wisconsin credit unions as well. It is my belief that maintaining an understanding of the organization and remaining committed to its overall mission and values (on both the profit and non-profit side) are essential for success.

Personally people believe that four year schools are better for anyone trying to get an education. There are many things to consider when choosing what type of school is better for them. The learning opportunities are outstanding and there are hundreds to choose from a four year schools. The job opportunities after graduation from universities have a much bigger field then community college. Extra activities and clubs outside of class are at a much bigger scale of what is there to do around campus. Lastly student culture and campus life at most universities are very divers when it comes to the students. Four year schools are where you need to go to get the best college experience possible.

​Are you guaranteed a pension after your retirement? Union workers are more likely assured a pension when they choose to go into retirement. Union jobs allow for a secure life for single parent homes with children that need a stable job and good benefits. Union jobs allow for higher wages for employees. Union members have the benefit to join as a collective power and go on strike if they feel things are going wrong or unfair in their business.

“The National Association of Federal Credit Unions (NAFCU) commissioned a study to examine what would happen to the U.S. economy if the presence of credit unions was reduced significantly as a result of eliminating the credit union tax exemption. The authors of the study are Robert Feinberg, Ph.D., Professor of Economics at American University; and Douglas Meade, Ph.D., Director of Research at Interindustry Economic Research Fund, Inc. Previous studies had demonstrated that changes to the credit union tax status in Canada and Australia led to a severe reduction in credit union presence. The resulting reduced competition for consumer financial services led to higher interest rates on consumer loans and lower interest rates on deposits for consumers in those countries. The results of the 2014 study indicate that similar impacts on consumers would be seen here in the United States should the credit union tax exemption be eliminated.” Some of the key findings are “Removing the credit union tax exemption would actually cost the federal government $15 billion in lost income tax revenue over the next 10 years. Gross Domestic Product would be reduced by $148 billion, and 1.5 million jobs would be lost over the next decade as well. The total benefit to U.S. consumers from the presence of credit unions in financial markets was $153 billion over the nine-year period of the study, or $17 billion per year.” (NAFCU 1) Taxing credit unions only results in costing the

for certain products then the credit union should be doing the same with their lending.

Choosing the right college to attend may be defined as a decision where one must choose his or her destined path. Many people believe that a university is the place to be, however, community colleges tend to be the right fit for most people. Although the two serve the same purpose, people tend to succeed more when they are closer to home. Students can earn degrees from both a community college and a university, but it is more beneficial for a student to go to a community college if he or she is looking to enter the workforce quickly.

Unlike conventional banking systems, credit unions are non-profit and focus on community and member needs. They offer higher interest rates on savings accounts and lower interest rates on loans and mortgages. Although their organizational structure is tax-exempt, they still

A Union Shop is an employer who is able to hire new employees on the the condition that these new-hires will join organized unions within a specified time. The unions, which are an organized group of workers, have the ability to impact wages, workings hours, benefits, and other work-related issues. However, with membership comes the requirement of dues paid for by the employees as well as the collective movement of all members to partake in strikes, and/or protests. Unions have made great strides in the workforce, specificially in response to the social and economic impact of the industrial revolution.

Credit unions are similar to banks in that they offer many of the same services such as check and savings accounts as well as loans. Deposits are also federally insured with credit unions as they are with banks. Credit unions combine these services with many other benefits such as personal service, generally lower interest rates and higher investment returns.

Lastly, unions improve working conditions and rights of the employees. In the past, workers had to go through harsh working conditions such as dangerous workplace and long hours of shift with a low wage. With having the unions around, they were able to improve these problems. When a demand isn’t met, a unionized worker can tell the union their issue’s and the union will handle it by talking with the employers. Most often the rights of the employees aren’t really protected because the employers take advantage of them. “Research has shown convincingly that unions have played a significant role in enforcing these laws and ensuring that workers are protected… Unions make a substantial and measurable difference in the implementation of labor laws.

Banks make their profits and cover their expenses simply by charging borrowers more for loans than they pay depositors to keep their money in the bank. So simply put, charging high interest rates and distributing a low interest return. The intermediation function of banks is extremely important because it helped to finance the American economy.

Explain why banks sometimes seek to merge with with Explain why banks sometimes seek to merge with with or acquire other banks or financial institutions. Great changes have been experiences in banking industry for the past decades. The most apparent alter is a mass of bank mergers, which have expanded both the average size of banks and their territories. Other dramatic changes including the development of Internet banking and the combination of banking with other financial services, for example, insurance and securities underwriting are also encountered.