Can credit union and coop banks replace traditional banks completely?

Edit (adding additional question): Has there been an attempt to do this on a national or societal level?

  • kingthrillgore@lemmy.ml
    2·
    13 days ago

    CUs will issue anything that can help their maintain the required returns on the owners of shares (read: you). They can issue loans, but because they are not issuing on speculation but on a clear expectation of a return to the owners of the shares (read: you) they cannot loan as much. Your shares and their returns are the dollars in your account.

    These have to be guaranteed by someone, either the NCUA or another CU or bank. In fact, you can go to a Credit Union that doesn’t insure via the NCUA. I wouldn’t recommend it.