Credit unions in the United States

下面为大家整理一篇优秀的assignment代写范文- Credit unions in the United States，供大家参考学习，这篇论文讨论了美国的信用社。美国信用社的许多经营理念与操作方式，在其它金融机构中不多见，凸显出若干优势与特点。在美国，城市信用社的普及程度并不亚于农村。但是，这些信用社混杂在各种经济组织之中，而且有的没有冠之以信用社的名称，也不像其它企业那样在媒体上进行大规模的广告宣传。这个互助合作的金融体系在城市里支持、帮助居民提高生活水准。

Many of the operating principles and practices of credit unions in the United States are indeed rare among other financial institutions, highlighting several advantages and characteristics. In the United States, urban credit unions are as popular as rural ones. However, these credit unions are a motley collection of economic organizations, and some do not have credit union names, nor are they heavily advertised in the media like other businesses. This collaborative financial system supports and helps improve living standards in cities. At the same time, it is also a strong financial backing and support for small businesses distributed in the city, such as grocery stores, hardware stores, stationery stores, fast food restaurants and franchised stores.

America's housing co-op, with 600,000 homes in New York alone, houses nearly 2m people. Housing cooperatives in New York can meet the needs of residents of different income levels. From low-income workers to Wall Street millionaires, residential cooperatives are a dime a dozen. In American cities, residential cooperatives have a greater impact on the elderly housing cooperatives, parking cooperatives and student housing cooperatives.

Another important form of cooperative medicine is community health centers. In the United States, there are about 600 community health centers serving more than 6 million people, mostly low-income people and immigrants.

Even the White House and congress have credit union tentacles. For example, many senators and representatives have joined the senate credit union, because it has the advantages of product and service. People from all walks of life are willing to become its members.

Credit unions in the United States explicitly promote the concept of "helping people" and "people are more important than wealth". Credit unions over the past 100 years have developed a corporate culture unique to credit unions in the United States. It encourages people not to make money as their biggest goal in life.

Credit unions in the United States are membership-based, and even if you save only $5 here, you're a member with a bonus. Accordingly, its income distributes the basiccest form is to pass accrual means, return profit to all member, arrive every namely the end of accounting year, after credit cooperative deducts the reserve that must pay, residual income adds did not allocate accrual, the share bonus that will be used to pay member. In addition, a guiding principle for the interest rate policy of credit cooperatives is: take it from the members and apply it to the members. As a result, deposit rates are high and lending rates are relatively low. This effectively amounts to an indirect return of profits to the members, thus avoiding the high-interest exploitation of commercial Banks. Because the profits of commercial Banks belong to minority shareholders, depositors must bear the cost of interest.

Credit unions account for about half of the staff, are working for the credit union unpaid. The senior management of the credit union, elected by the general assembly, also volunteered for the service of the credit union without pay, and the credit union only paid reasonable expenses incurred in the course of its operation.

In the United States, credit unions are not completely open to the public. It can be said that it belongs to a relatively closed financial organization.

Credit unions in the United States have a basic membership requirement. The requirement states that a credit union must be based on a common association, that is, there must be a common bond between members of the same credit union. Thus there are professional credit cooperatives, organizations or community-based credit cooperatives, community-based credit cooperatives. In the eyes of members and outsiders, credit unions are financial service institutions for specific groups and for their members.

This joint requirement is seen as a safeguard for the credit union and an enhancement of the sense of membership.

Anyone with a common background who wants the services of a credit union and is willing to undertake the obligations of a member may join the credit union.

In addition, the credit union does not require much in the way of property for its members. Each member only needs to subscribe for a minimum of $5 in shares to become a member of the credit union and enjoy the financial services it provides. At the same time, credit cooperatives enjoy the freedom to join, but also enjoy the right to withdraw.

Under the democratic management framework of equal participation of all members in credit cooperatives, the "one person one vote" system is implemented, that is, no matter how many shares a member has or how much trading volume with the credit cooperatives, each member can only get one vote and enjoy equal voting rights and decision-making rights in credit cooperatives.

At the same time, credit unions adhere to the principle of non-discrimination, all members are treated equally, not because of race, color, gender, religion and physical barriers, or because of family status and political stance and other differences between their members.

All management agencies of credit cooperatives are elected by the general meeting of all members. In the general meeting of the members, no one has the right to monopolize the formulation of a decision, and all decisions related to the members must be produced and adopted by the collective vote of all the members. In order to effectively support the democratic management system, credit cooperatives have established an effective internal operation system, forming a three-layer check and balance mechanism of general meeting, council and supervision committee.

In terms of assets, 93.7% of credit unions in the United States have assets of less than $100 million, among which 61.3% have assets of less than $100 million.

Compared with Banks, credit unions themselves operate on a smaller scale. The average size of a us bank is close to $1bn, while the average size of a credit union is only $66m. Because of their small size, credit unions need a strong association to protect their rights when making laws. As a result, credit union associations play a significantly larger role in the steady development of credit unions than banking associations.

Credit unions in the United States are small, but they do well. In 2003 credit unions grew by 9.5% of assets and Banks by an average of more than 7%. But the "net profit" ratio for credit unions is 0.98 percent, compared with 1.9 percent for Banks, which is far higher. The ratio of assets growth is high and the ratio of net profit is low.

As early as 1908 ~ 1958, credit unions used the clearing and settlement systems of Banks. But then they discovered that because the bank was a competitor to the credit union, the cost of the service was higher. To this end, the cajas believe that it is necessary to establish a completely independent settlement system. Finally, there was the central credit union, an institution based on dozens of credit unions in the United States that could provide payment and settlement services for these dozens of credit unions.

Today, credit unions in the United States have formed a complex and comprehensive system of clearing services, the basic framework of which is composed of central credit unions in the United States, credit unions in 44 states and credit unions all over the country. Each credit union deposits its remaining funds in the state credit union to form savings shares in the state credit union, which will use the funds to invest or to lend to credit unions with additional liquidity requirements.

Similarly, the state credit unions became members of the United States central credit union by depositing their remaining funds in the United States central credit union. The United States central credit union provides liquidity or direct support to credit unions across the country through the 44 state credit unions.

Because U.S. central credit unions have direct access to the national clearing system for bills and are involved in a variety of investments, this allows credit union funds to flow across state lines. In addition, the central credit union of the United States can borrow on behalf of its members from the central liquidity facility management center, which is operated by the national credit union authority.

Member deposits are the primary source of funding for credit unions in the United States and the basis for their lending. At first, most credit unions used regular passbook savings accounts. But since the 1970s, credit unions have adopted a wide variety of savings accounts, including checkable stock exchange accounts, money market shares, share certificates, and retirement savings accounts such as iras. Although these new forms of saving are developing rapidly, whatever form they take, they are still shares in nature.

Subject to common and joint requirements, credit unions in the United States accept deposits from members who meet the requirements of a credit union and automatically convert them into depository shares. This is the biggest difference between a credit union savings account and a checking account at a commercial bank or other institution. The equity deposit also represents the owner's equity. For example, the amount in a member's salary passbook is deposited into a credit union, either as a deposit or as an automatic repayment for a low-cost loan. For years, credit union stock deposits have been a good investment for member savers.

In addition, from the perspective of the balance sheet, since the savings shares owned by credit cooperatives are liabilities, they are different from the shareholders' equity in the common enterprise share mechanism. These shares are essentially consistent with savings. Because the money put into a credit union is considered a share, the return on that money is called a "dividend" and can be made in a way that is not taxed on interest. When members invest in a credit union, they receive a fixed "bonus" return, the right to distribute surplus profits, and a vote to participate in management decisions.

Credit union regulators in the United States have two tracks. One is the national credit union administration, which oversees more than 9,000 federally registered credit unions. The other is the state government's credit union regulator, which oversees more than 4,000 credit unions registered with the state government.

The creation of credit unions in the United States can be done through two separate agencies. Or it may be established by state legislation and licensed by the state credit union administration. Of America's 10,000 credit unions, 60% have federal licences and 40% have state ones.

Because neither the early comptroller of inflation nor the federal reserve wanted to regulate credit unions, it was ultimately the farm credit administration that took responsibility for regulating credit unions. Since then, credit union supervisors have changed several times, including the federal deposit insurance corporation, the federal security agency and the department of health, education and welfare. It was not until the national credit union authority was established in 1970 that credit unions had a more stable national regulator.

In addition to overseeing the nation's credit unions, NCUA operates and oversees two organizations that serve them: the national credit union share insurance fund and the central liquidity facility management center. NCUSIF was established in 1970 to provide federal insurance for members' savings shares. It is an independent equal to the federal deposit insurance corporation.

First, after reviewing the tax-exempt status of credit unions, congress decided that "credit unions are non-profit cooperative organizations whose income is used to help members improve their living standards and promote community coordination and development. Therefore, their income does not constitute profits", so they can be exempted from federal income tax.

Secondly, the members' savings deposits in their credit cooperatives are of the nature of "shares", so the earnings of such shares are not called "interest", but "dividends", thus exempt from individual interest income tax.

The preferential support policies quickly made credit unions the most popular financial institutions, but they also attracted strong opposition from American bankers. Historically, us credit unions have used legislative advantages to successfully fend off three attacks by bankers, thus guaranteeing their status as banking competitors in the us financial community. The three major counterattacks were the defense of tax exemptions in the 1960s, the fight for checking deposits in the 1970s, and the expansion of membership in the 1990s.

With these exemptions and other incentives, credit unions can recruit members with favorable rates and services. By the end of June 1998, there were 73.4 million members in the United States; by the end of 1999, there were 77.5 million. It currently has 84 million members; About 12 million Americans only deposit money in credit unions, not Banks.

Credit unions in the United States have created a two-tier defense against capital and operational risk.

The first line of defense under the credit union regulatory authority is deposit insurance, which protects against financial risk. The national supervision bureau has a special management team, which assesses many indicators of credit cooperatives at all levels according to the obligations of members, all financial statements and business performance. The data shows that the average capital adequacy ratio of us credit unions is 10.77%, while the average capital adequacy ratio of Banks is 9.1%. In addition, in terms of the proportion and recognition of non-performing loans, credit cooperatives are defined as non-performing loans after 60 days, while Banks are defined as non-performing loans after 90 days. Compared with Banks, credit unions had a non-performing loan ratio of 0.77 percent, while Banks had an average of 1.9 percent.

Under this line of defence, cinco provides a second line of defence against liability risk. Liability insurance covers many things, such as: financial fraud or employee theft, theft and robbery, and so on. If any credit union is involved in a financial fraud, the credit union system will immediately communicate the information to other credit unions to prevent a similar situation from happening. This line of defense effectively helped credit unions reduce this risk.

The effective identification of risks by credit cooperatives also benefits from the relatively perfect individual credit environment in the United States. Credit unions in the United States can obtain personal credit information directly from the three major credit bureaus in the United States. To bad credit, implement high loan interest rate; For credit excellent, the implementation of low interest rate loans. For bad debts, credit unions can entrust the state association of specialized companies for collection, but also by the internal loan officer collection. If the collection is not successful, it may be written off as bad debt. The United States credit union bad debt provision rate completely by the credit union decision.

In addition, the borrower's current financial constraints affect his ability. Past liability records also show his character and ability, while the debt ratio reflects his level of capital.

Credit cooperatives have certain advantages in implementing effective risk control: for example, members of credit cooperatives usually have stable income; A credit union can deduct the principal and interest of a loan payment directly from the paycheck it receives. The "clublike" atmosphere of credit unions makes each member more concerned about the impact of his or her actions on others, so as to encourage members to make efforts to fulfill the contract and avoid causing losses to other members. And the widespread use of credit - term insurance also helped reduce loan losses at credit unions

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