The structure of the credit union and the evaluation of the social and economic characteristics of these savings and lending intermediaries

Crawford, Cecil E (1966) The structure of the credit union and the evaluation of the social and economic characteristics of these savings and lending intermediaries. PhD thesis, University of Glasgow.

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The purpose of this study on credit unions is to describe analyse and evaluate the economic and social characteristics of these "common bond" saving intermediaries and lending agencies, especially small credit unions as they now exist in the United States, Canada and new developing countries. It attempts to determine the effectiveness of credit unions and examine not only the practical science of economics of those organizations but also the non-economic implications in the field of social science. The bulk of the data for this study was obtained from Government Officials, businessmen and Credit Union Officials and members. Due to lack of previous work in this field, the approach end methods of study were by direct observation and the evaluation of voluminous material furnished by people in credit unions, leagues, associations and governmental agencies. Personal visits were also made to many parts of the world to observe credit union development. Interviews were conducted largely in English, however, some ware conducted in French, German, Portuguese and Italian through the assistance of interpreters. Hundreds of volunteer unpaid credit union officials spent many manhours completing questionnaires, commenting on specific data and forwarding useful contributions and references. As far as is known, the first current reference guide on credit union material ever collected has been included for use by other research students. Most of the reference material is now on file at the Filene House, International Credit Union Association Inc., at Madison, Wisconsin. To test findings and obtain more information, numerous presentations ware made to various groups of people including a special eight week BBC Television Program. Also a Model Credit Union, the first mechanized credit union in Great Britain was established in Scotland. One outgrowth from this study includes a proposed model credit union act and a proposed credit union by-law for Great Britain should officials desire to promote credit unions in this country. It is contended that credit unions are non-profit, legally chartered corporations, not intended to do general banking business, but to serve the saving and credit needs of a well defined group of people associated under a common bond. Further that the majority of credit unions are, small organizations operated by volunteer workers. Regardless of size, each credit union provides their members with the same basicbenefits. In terms of numbers, the credit unions are the fastest growing financial institutions in the Western Hemisphere. In range of citizen participation and variety of uses, they are the most versatile institutions of modern times, and they aro becoming increasingly global with impressive gains in many new developing countries. From the social and economic aspects, it is contended that the credit union is an extension of the household, and its main function has a subsidiary character which permeates the entire global movement affecting almost all credit union operations. Depending upon the circumstances, the relationship between members of a credit union may be complementary, supplementary and even conflictive. These conflicts and the subsidiary character have a direct application to the matter of reserves, for losses on leans, the problem of liquidity and the liquidation of credit unions. While there have been some losses to members, the actual losses have been generally insignificant and credit unions have failed not from low reserves but largely through a lack of interest and poor management of volunteer officials. The opposition to credit unions appears to be growing. They are confronted with some serious challenges in the legislative area, in the economic area, and in the area of soundness and solvency. On the economic side , the credit union operates among many other financial instructions, in an imperfect market, fairly competitive on the saving side, but seldom equalled by competitive credit grantors in a disorganized and confused lending market.

Item Type: Thesis (PhD)
Qualification Level: Doctoral
Keywords: Economics, Banking
Date of Award: 1966
Depositing User: Enlighten Team
Unique ID: glathesis:1966-72042
Copyright: Copyright of this thesis is held by the author.
Date Deposited: 17 May 2019 13:15
Last Modified: 17 May 2019 13:15

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