Credit union
A credit union is a member-owned financial cooperative providing services such as savings and lending to eligible members. Its purpose, governance and permitted services depend on the applicable framework. It is a type of cooperative rather than merely any lender offering small loans. Membership eligibility and regulatory protections must be established for the particular jurisdiction.
Worked example
Eligible members pool savings through a financial cooperative that makes loans and operates under its governing and regulatory requirements.
Common mistake
Do not assume every community lender is a credit union or that all credit unions worldwide offer identical services, membership rules or protections.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Supporting | September 2026–June 2027 |
| FIA | FBT | Supporting | September 2026–June 2027 |