In total, there are about 4,800 federally insured credit unions in the U.S. Conservatorship means that the NCUA has placed a credit union under its control due to operational issues, while a liquidation means the credit union has been shut down. And deposits up to $250,000 at federally insured credit unions are guaranteed, just as they are at banks.Īngela Vossmeyer, an associate professor of economics at Claremont McKenna College, said that data from the National Credit Union Administration shows that six to seven credit unions, on average, have entered conservatorship or liquidation annually since 2017. These financial institutions are not-for-profit cooperatives owned by their members and focused on their communities’ needs, while banks are for-profit enterprises.Įxperts told us that credit unions do fail, like banks (which are also generally safe), but rarely. Do, in fact, credit unions fail, and we just don’t hear about them because they’re too small? Or is there something inherently different about the way credit unions are structured and operate that make them much less likely to fail? Is my smug security misplaced? Īs I listen to the many reports about bank failures, I can’t help but feel smugly secure that I do all my personal banking with credit unions (including mortgages, credit cards, car loans and certificates of deposit). Ever wondered if recycling is worth it ? Or how store brands stack up against name brands? Check out more from the series here. This is just one of the stories from our “I’ve Always Wondered” series, where we tackle all of your questions about the world of business, no matter how big or small.
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