|
CU: |
Not-for-profit financial cooperatives |
|
Bank: |
For profit corporations |
| |
|
|
CU: |
Tax-exempt because they are owned by taxpaying members |
|
Bank: |
Pay taxes on profits they distribute to outside stockholders |
| |
|
|
CU: |
Loan rates are capped at 18% |
|
Bank: |
Lending rates are unregulated
|
|
CU:
|
Organized to serve a specified field of membership |
|
Bank: |
Open to the public |
| |
|
|
CU: |
Owned by their members, democratically controlled, one member =
one vote |
|
Bank: |
Owned and controlled by outside stockholders |
| |
|
|
CU: |
Focus on consumer loans and member savings |
|
Bank: |
Focus on commercial loans and deposit accounts |
| |
|
|
CU: |
Dividends are distributed to members |
|
Bank: |
Dividends are paid to the stockholders |
| |
|
|
CU: |
Voluntary directors and committees reflect the diversity of
membership |
|
Bank:
|
Paid directors who do not necessarily reflect the diversity of
their customer base |
| |
|
|
CU: |
Known for offering more favorable rates and services |
|
Bank: |
Known for higher fees and less favorable rates |
| |
|
|
CU: |
Cooperation between Credit Unions |
|
Bank: |
Competition between Banks |
| |
|
|
CU: |
Insured to $100,000 by NCUA/NCUSIF |
|
Bank: |
Insured to $100,000 by FDIC/BIF |
| |
|
|
CU: |
Insurance fund is self insured and has never caused a loss to
the taxpayer |
|
Bank: |
Savings & Loan bailout used BIF taxpayer dollars |
| |
|
|
CU: |
Motivated to maximize service |
|
Bank: |
Motivated to maximize long-term stockholder equity |
| |
|
|
CU: |
Must generate earnings to raise capital |
|
Bank: |
Can raise capital without having to earn it. |
