Saturday, August 22, 2009

A strong competitive force for credit unions

Credit unions today represent stiffer competition for commercial banks, savings banks, finance companies, and other financial institutions serving the consumer than was true in the past. Today, one out of every six Americans belongs to a credit union- roughly double the proportion a decade earlier. During the 1960s and 1970s the industry repeatedly demonstrated its capacity for innovation and the ability to compete successfully for both installment loans and small savings accounts. With the authority recently granted associations by the depository institutions deregulation and monetary control Act and by other federal and state laws to make long-term mortgage loans and offer credit cards, transactions accounts, and higher-yielding savings certificates, the credit union is likely to be an even more significant competitive force in offering consumer credit and savings plans in the years ahead.

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