With the affects of the economic downturn very much in our midst, credit unions continue to be a source of stability. Our philosophy of “putting people before profits” to provide financial services to all of our members was forged in response to an economic downturn over a century ago.
With many of the “too big to fail” financial institutions on thin ice because they were chasing profits, people are increasingly looking to credit unions to provide affordable financial products backed by sound financial practices. Says Jeffrey Davenport, CEO of Massachusetts’ Southbridge Credit Union, “Even in the midst of the current market crisis, credit unions have been repeatedly heralded as an important source of stability in the financial sector. Indeed, credit unions remain committed to helping our citizens retrieve the economic power lost during the current crisis and to recover their homes lost because of the mortgage market upheaval.”
One lingering effect of the subprime mortgage meltdown is that the ability to obtain loans from many institutions virtually disappeared. Not so at most credit unions. As Senator Joe Lieberman recently stated in a letter to Daniel Mica, CEO of the Credit Union National Association (CUNA), “Credit unions have been among the few lenders in the financial industry demonstrating the resiliency and strength to continue lending.”
Just as in other difficult economic times, credit unions are poised to be part of the solution, because serving our members and our communities is what we do best. For over a century, it’s been the guiding principle that our members can believe in.
