Credit unions set up to thrive in tough economy

The Oct. 27 Gazette article, “Iowa's credit unions growing in wake of financial crisis,” was well-written and speaks to how and why credit unions are growing in this tough economy.

Iowa credit unions have always remained faithful to sound lending practices, and, as a result, are highly capitalized and well-positioned to assist our member owners.

I would like to clarify one section of the article that explained why credit unions are a better deal in the marketplace. Credit unions are member-owned, not-for-profit cooperatives that exist for the sole purpose of serving their local communities and members. Our earnings are reinvested into our membership in the form of lower rates on loans, higher returns on savings and lower fees. Credit union executives are not paid salaries comparable to bank executives, and credit union boards of directors are unpaid volunteers.

Credit union members nationwide kept $7.3 billion - about $80 per member - more in their pockets in 2009 than they would have at banks.

The main focus of credit unions has always been to protect the interests of our members and ensure their financial well-being.

Patrick S. Jury

President/CEO

Iowa Credit Union League