Credit union league
Encyclopedia
A credit union league is a United States state-level trade association
for credit union
s, which are non-profit financial cooperative
s. Credit union leagues hold a primary interest in the Credit Union National Association
(CUNA).
Many credit union leagues were formed through the efforts of the Credit Union National Extension Bureau
in the 1920s. In 1934, Congress enacted the Federal Credit Union Act
and the CUNA was formed.
The term "league" was employed to denote a mutually supportive organization for the promotion and success of credit unions. Each state in the United States, as well as Washington, D.C.
, Puerto Rico
and Guam
, had its own League. State leagues also designed the Corporate Credit Union
model, to serve as the "credit union's credit union" by providing financial services independent of the commercial banking industry.
From the 1930s until the 1970s, one of the chief duties of the League system was to promote and help facilitate the chartering of new credit unions. However, increased regulation and higher capitalization requirements, combined with the decline in American manufacturing job creation, virtually ended the formation of new credit unions except in special circumstances.
Leagues also operate for profit "services corporations" which provide services (credit card processing, commercial printing, ATM networks, Shared Service Centers
, etc.) to credit unions and to other state leagues.
Consolidation of statewide Leagues began in the late 1980s and accelerated in the 1990s. Also in the 1990s, a move to modernize the names of Leagues also began to happen. In Ohio
, for example, the organization became known as the Ohio Credit Union System
, with the Ohio Credit Union League becoming just one of four components of the system umbrella.
Leagues also perform the function of lobbying state legislatures for laws that are beneficial to credit unions through the registered lobbyists.
Trade association
A trade association, also known as an industry trade group, business association or sector association, is an organization founded and funded by businesses that operate in a specific industry...
for credit union
Credit union
A credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members...
s, which are non-profit financial cooperative
Cooperative
A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit...
s. Credit union leagues hold a primary interest in the Credit Union National Association
Credit Union National Association
The Credit Union National Association, commonly known as CUNA , is a national trade association for both state- and federally-chartered credit unions located in the United States. CUNA provides member credit unions with trade association services, such as lobbying, professional development, and...
(CUNA).
Many credit union leagues were formed through the efforts of the Credit Union National Extension Bureau
Credit Union National Extension Bureau
The Credit Union National Extension Bureau was the organization that advocated for and fostered credit unions in the United States from 1921 until 1934. CUNEB laid the foundation for the Credit Union National Association and the Federal Credit Union Act...
in the 1920s. In 1934, Congress enacted the Federal Credit Union Act
Federal Credit Union Act
The Federal Credit Union Act is an Act of Congress enacted in 1934. The purpose of the law was to make credit available and promote thrift through a national system of nonprofit, cooperative credit unions...
and the CUNA was formed.
The term "league" was employed to denote a mutually supportive organization for the promotion and success of credit unions. Each state in the United States, as well as Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
, Puerto Rico
Puerto Rico
Puerto Rico , officially the Commonwealth of Puerto Rico , is an unincorporated territory of the United States, located in the northeastern Caribbean, east of the Dominican Republic and west of both the United States Virgin Islands and the British Virgin Islands.Puerto Rico comprises an...
and Guam
Guam
Guam is an organized, unincorporated territory of the United States located in the western Pacific Ocean. It is one of five U.S. territories with an established civilian government. Guam is listed as one of 16 Non-Self-Governing Territories by the Special Committee on Decolonization of the United...
, had its own League. State leagues also designed the Corporate Credit Union
Corporate Credit Union
A corporate credit union, also known as a central credit union, provides services to natural person credit unions. In the credit union industry, they are sometimes referred to as "the credit union’s credit union"...
model, to serve as the "credit union's credit union" by providing financial services independent of the commercial banking industry.
From the 1930s until the 1970s, one of the chief duties of the League system was to promote and help facilitate the chartering of new credit unions. However, increased regulation and higher capitalization requirements, combined with the decline in American manufacturing job creation, virtually ended the formation of new credit unions except in special circumstances.
Leagues also operate for profit "services corporations" which provide services (credit card processing, commercial printing, ATM networks, Shared Service Centers
CU Service Centers
CU Service Centers CU Service Centers CU Service Centers (commonly known as (shared branching) is an organization of credit unions that allows members of participating credit unions to process transactions at any participating branch. As of September 2011, the network included 4,372 participating...
, etc.) to credit unions and to other state leagues.
Consolidation of statewide Leagues began in the late 1980s and accelerated in the 1990s. Also in the 1990s, a move to modernize the names of Leagues also began to happen. In Ohio
Ohio
Ohio is a Midwestern state in the United States. The 34th largest state by area in the U.S.,it is the 7th‑most populous with over 11.5 million residents, containing several major American cities and seven metropolitan areas with populations of 500,000 or more.The state's capital is Columbus...
, for example, the organization became known as the Ohio Credit Union System
Ohio Credit Union System
The Ohio Credit Union System is an Ohio-based American trade association for credit unions. The Ohio Credit Union System is composed of the Ohio Credit Union League , the Ohio Credit Union Foundation , OCULPAC , and OCUL Services Corp., a service & solutions supplier for credit unions...
, with the Ohio Credit Union League becoming just one of four components of the system umbrella.
Leagues also perform the function of lobbying state legislatures for laws that are beneficial to credit unions through the registered lobbyists.