Orlando Credit Union Research Paper

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Perception of power and politics Orlando credit union is like all credit unions, it is govern by its Board Members. The Boards Members is composite of volunteers which are mostly retired, people from different back grounds. They have the power to change the policies, interest rates and employee loans. These volunteers exercise power which they do not have at work or at home. The size of the credit union does not matter, all credit union have a Board members that have the power to approve or denied any policy changes, refund fees to it members and increase or decrease of the interest rates. The board should implement its power wisely within guidelines of the business, while attending to its fiduciary responsibilities. In the past the Board members have used this power for their owned benefits. Two years ago the credit union was offering 2.50 percent on the savings accounts and 3.15 percent on the auto loans. The credit union was not making much of a profit. While…show more content…
Unlike banks, credit unions do not pay taxes; this allows them to offer higher rates for deposits and lower rates for loans. The credit union members are the share owner of the credit union, meaning that it assets are based on the membership deposits. If the membership declines it faces tremendous problems. The biggest trend that is threading the credit union today is the financial crisis that is swiping the financial industry, financial institutions that have been establish over 100 years have fallen to this crises. The future of the banking industry and credit union is not certain. The government is forcing financial institutions that are having problems to merge with e more stable ones “Twenty-one credit unions over $50 million have merged during these five years. This total is only 1.5% of all 1,411 mergers and suggests that larger credit unions prefer to remain independent.” (James,

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