Credit Union

Credit Union

A type of financial institution owned by all depositors. Credit unions specialize in lending to individuals, with relatively low amounts of business loans.

A credit union, called a caisse populaire in some communities, especially in Quebec, is a member-owned alternative to a chartered bank for everyday banking. Profits are meant to benefit members rather than outside shareholders. In some regions, these co-operatives serve a large share of the population.

Related Lesson:

Banking Institutions icon
Return To Glossary