It pays a miniscule dividend.
I'm a member of a Credit Union, fairly large operation by CU standards (c. 25K members) and generally seems fairly progressive in terms of technology - offering debit cards etc. But the wasting of money seems to be to be on a mind-blowing scale. It opened two new offices over the past decade or so, one at either end of its catchment area, along with one in the middle of its catchment area. A few years ago it bought a large premises elsewhere in the catchment area and applied for planning to demolish the building and build a new 3 story office.
It pays a miniscule dividend.
I see a role for CU's in small scale, local relationship lending but they don't have the scale to absorb this kind of extravagant expenditure.
The amount of bad debts being written off by my credit union is huge. The provision for these debts is increased every year. .
They have been spreading out these write offs over a number of years so as not to make it look so bad
...............In reply to Derek1969
I have a very small amount in a deposit a/c so I couldn't be bothered. One problem with having many small owners(members/shareholders) is that its rarely worth any one members while in monitoring the behaviour of managers, because they have to expend the time and effort but the gains accrue to them only in proportion to their % ownership - there's a vast economic literature on this free rider problem in corporate ownership - basically it shows that many small shareholders = powerful managers, free to pursue their own interests at the expense of shareholders.
Tend to disagree with the notion that CU movement/lending in trouble.
We have circa 400 unions. Only a handful are in real trouble. Several have been forced to merge ,dozens will merge to become stronger.
How many of our (professional)(regulated) (well run?) covered by our guardians in Dept of Finance/Central Bank , have even survived?
Is it not surprising that most of these Amateurs will survive?
...............
It is a credit Union , not a Bank
..In general C U Management did not pursue their own interests.
In my view the building spree that some credit unions embarked on served the interests of management rather than members (who foot the bill).
I'd agree with this, but the membership did go along with it, whether actively or by not shouting stop, they did acquiesce.
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