Author: Rozran, Andrea Rice
Summary
This paper is one of a series contemplating strategies which can be used by community residents and voluntary associations to assist in achieving reinvestment in inner-city, older suburban and rural areas. Credit unions are cooperatively owned, and member-depositor managed financial institutions which are chartered either by state or federal agencies to provide thrift and credit services to their members. The field of membership for credit unions is defined as a group of individuals having one of the following common bonds: occupation; association; or geography. In addition to discussing the history, chartering and operation of credit unions, the author explains how a credit union‘ s service area and lending policies qualifies it to be considered a “community development” institution. She cites examples from Missouri and Massachusetts to demonstrate how relatively small credit unions can impact positively the economic environment of a specific geographic area.
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Community Development Credit Unions as Instruments of Reinvestment
