Describe the similar services provided by banks and credit unions. How do these two institutions differ in their philosophy and the types of projects they each finance?

While banks and credit unions are both financial institutions that offer similar services (checking and savings accounts, auto loans, and mortgages), the main difference between a bank and a credit union is that "customers" of a credit union are members, and they own the institution.

Question

Social Studies

Gideon Lam

12 September, 16:48

Describe the similar services provided by banks and credit unions. How do these two institutions differ in their philosophy and the types of projects they each finance?

While banks and credit unions are both financial institutions that offer similar services (checking and savings accounts, auto loans, and mortgages), the main difference between a bank and a credit union is that "customers" of a credit union are members, and they own the institution.

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Answers (1)

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Jessica Curtis · Answer 1

Banks are not owned by the costumers, but the Union is.

Explanation:

The main difference between the two phenomenons is simply that the Bank is run by someone who is separate from the costumer base of the bank itself.

It is run by people who have no stakes in the interests rates other than profit from the costumer.

The credit Union is much more liberal in that it is the members who have a stake in maintaining good business and lending practices because they are the ones benefiting from the good practices.