Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Hampel to AOLIWalletpopI How to tell CU is sound
MADISON, Wis. (3/7/11)--Bill Hampel, chief economist at the Credit Union National Association, last week told readers of AOL’s Walletpop how to determine if a credit union is financially sound. Because many readers and financial experts have suggested that consumers join credit unions as an alternative to rising fees and fewer perks at many large banks, Walletpop asked Hampel what prospective credit union members should look for when considering a credit union. “The main thing is to check for deposit insurance,” he advised. “Ninety-nine percent are insured by the National Credit Union Administration (NCUA) which is equivalent to Federal Deposit Insurance Corp. (FDIC) insurance for a bank.” NCUA insurance protects credit union deposit accounts up to $250,000. Also, prospective members can ask about a credit union’s capital ratio, Hampel told Walletpop. According to their capital ratios, 96% of all credit unions fit or exceed the criteria for being well-capitalized, recent research indicates, Walletpop said. Also, Bankrate has an online tool that helps people evaluate the health of any U.S. credit union. Credit unions’ culture plays a major role in keeping them financially fit, Hampel said. “No credit union CEO or board member has any stock options, so they have a reduced incentive to take the risks that would make those stock options worth a lot of money,” he added. “They operate at a much lower risk level, and executives don’t get much of a reward for taking on risk.” To read the article, use the link.
Other Resources

RSS print
News Now LiveWire
Stay tuned for coverage of @CUNA's BSA conference which starts Sunday. #CUNABSA #CUNACompliance
4 hours ago
Today's the last day to complete @CUNA's Home Depot data breach survey http://t.co/UcB8G9bVXe #StoptheDataBreaches
6 hours ago
Brenda Davis of Cross Roads Ministries will walk through 83 communities during the Ending Hunger Walking tour. (2 of 2)
7 hours ago
The Ending Hunger Walking tour, coordinated by the Maine CU League, kicked off at Old Maine CU in Augusta today. (1 of 2)
7 hours ago
Darwin Brokke of Citizens Community CU represented the #CU Association of Dakotas at a housing summit hosted by @SenatorHeitkamp
7 hours ago