Re:Show HN: Ranking of banks by their likelihood to collapse
by eganist on Sunday March 19, 2023 @05:08PM
(#35223654)
At least in the US:
• credit unions have larger reserves. Often 10+%
• credit unions are less likely to be holding massive bundles of securities for which they'd have to write down losses during a sale.
• credit unions tend to have less exposure to uninsured depositors (i.e businesses or people who are just flush with money)
• credit unions are not-for-profits under 501. It's either 501(c)1 or 501(c)3 depending on the credit union from what I recall, but the consequence is that they're federally tax free. Which of course means more money to support the membership.
• there's not really a share price for a credit union other than maybe whatever it cost to open the account. So there's no way to gauge public sentiment around exposure anyway.
• credit unions have larger reserves. Often 10+%
• credit unions are less likely to be holding massive bundles of securities for which they'd have to write down losses during a sale.
• credit unions tend to have less exposure to uninsured depositors (i.e businesses or people who are just flush with money)
• credit unions are not-for-profits under 501. It's either 501(c)1 or 501(c)3 depending on the credit union from what I recall, but the consequence is that they're federally tax free. Which of course means more money to support the membership.
• there's not really a share price for a credit union other than maybe whatever it cost to open the account. So there's no way to gauge public sentiment around exposure anyway.
Hope that explains why.