Credit union finance 101
Every director must have a basic understanding of several financial concepts.
Credit union directors come from all walks of life. Some are familiar with business and financial issues, some aren’t. Even if you come from a business or financial background, there’s a good chance that background isn’t in banking or credit unions.
I’m a certified public accountant, and when I began to audit credit union clients 30 years ago, I realized the methods, issues, and key ratios credit unions use aren’t the same as what other businesses use
I had to learn the nuances of credit union finance—and you do, too.
Directors have a legal obligation to understand key financial information. It’s even written into law with NCUA regulation 701.4.
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