The credit union industry faces an inherent dilemma: credit unions are drawn to work cooperatively yet they are responsible for their own shops. In the credit union industry today, the ongoing saga of Mission SF FCU and Toledo Urban CU is playing out quite publicly. Executives at credit unions of all shapes and sizes are coming down on either side of the issue: should credit unions be soliciting donations?

The answer is yes and no.

Low-income credit unions–by the nature of who they're trying to serve–are not going to have the same resources or growth other credit unions can muster. They also are likely to experience somewhat higher delinquencies as they nudge the boundaries of which borrowers represent prudent risks. This is the purpose of these financial institutions.

Continue Reading for Free

Register and gain access to:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.