Credit unions are a specialized type of depository institution with a cooperative, non-profit construction and also a national tax exemption. They originated as small, combined institutions with an emphasis on consumer financing that was uncollateralized to the unbanked working-classes. Over time, credit unions have evolved into a wide selection of sizes, though compared to banks, a higher proportion of credit unions are still quite little. One subset of "nontraditional" credit unions have really been able to grow as a consequence of free area of membership requirements and expanded product and service offerings through using corporate credit unions and Credit Union Service Organizations.
Policymakers have been lobbied by credit unions for enlarged powers that will enable them to help spark the economy and make jobs by serving more customers and expanding more credit. These expanded powers comprise increasing the business lending cap and raising capital that is secondary from non members. The protagonist is a research analyst who must appraise the advantages of credit unions against the costs, for instance, national tax exemption. He also must think about the policy aims of credit unions against alternate means to reach those aims.
PUBLICATION DATE: May 09, 2012 PRODUCT #: 312131-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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