Search
 

Some Thoughts on Credit Union, Bank Conflict

I've given some thought to a question Mike Welch posed in his March 3rd column, "GAC Again Setting for [Mostly] Highlights" - "What is the purpose of a bank?" - and thought his answer - "To make a profit" - was a little over simplistic and served only to further...

By Staff Writer | Updated on March 16, 2004

I’ve given some thought to a question Mike Welch posed in his March 3rd column, “GAC Again Setting for [Mostly] Highlights” – “What is the purpose of a bank?” – and thought his answer – “To make a profit” – was a little over simplistic and served only to further polarize the relationship between banks and credit unions. Sure, banks seek to make a profit. They have a fiduciary responsibility to their shareholders to do so. But their purpose is to provide financial services that their customers will need and use. If they don’t fulfill this purpose, they won’t make a profit. Here are some other quick thoughts I have: first, credit unions can’t provide the financial services they offer without earnings either. And as far as the polarization issue, more nastiness has certainly come from the banks on credit union issues than from credit unions, but it still falls somewhat short of being one-sided as we have certainly not been innocent in trying to vilify banks, much as the article describing the so-called “debate” presented. Other than that, I agree with Welch’s thoughts about the “debate”. Although I was not present for the GAC, I would hope that the credit union position would rise higher than name-calling. Martin Hansen President/CEO SMSE FCU Southfield, Mich.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.