Credit Unions worldwide operate on the philosophy of “People Helping People”. In a nutshell, they exist to serve their members through the mobilisation of collective savings and making loans to members.
These members have shared interests and a common bond. The bond is usually established through being a member of particular organisation such as Jamaica Constabulary Force, Jamaica Defence Force, or the Jamaica Teachers Association.
Membership can also be established via association with a particular group such as being a public sector employee, or if one lives or working in a particular parish such as Manchester or Portland.
A credit union is owned, controlled and operated democratically by its members, with each member having one vote irrespective of the number of shares he or she holds.
Through this vote, members are vested with the supreme authority which they exercise by electing a board of directors, supervisory committee and credit committee in general meetings.
Members of the board of directors, supervisory and credit committees are all volunteers charged with responsibility of governance over the affairs of the credit union. They report on their stewardship to members at the annual general meeting.
Due to their shared interest, credit unions provide financial education for their members and promote their financial well-being by providing them with a range of products and financial services.
http://www.jamaicaobserver.com/sunday-finance/credit-unions-what-do-they-do-_166878
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