Aspects of the financial sector management: an evolution of credit unions

Abstract

A possible sustainable growth of credit unions is being examined in this paper. Credit unions have a rich history. Some, however, adhere more closely to their historical roots than others. These credit unions base their philosophy on the premise that members, in a voluntary capacity, actively participate in the governance and the running of the credit union; and that the credit union should not develop beyond a size and level of financial sophistication at which individual members can fully contribute in this capaci-ty. Other credit unions have strayed far from their historical roots. Moreover the analysis of contemporary credit unions conceptions and problems of management improvement are performed. In addition theoreti-cal priorities for credibility and international capabilities of credit unions are presented. A sketch of some actual theories is being performed and methods for analysis of credit unions' activities are particularly composed. Following method of improvement of observational research was performed in this paper. In order to evaluate common tendencies of activities of the credit unions in the World and particularly in the European Union the financial institutions’ legal regulations are specially surveyed. Furthermore legal regulations of credit unions are analyzed in practice for local and international credit unions of Lithuania. The preliminary evaluation of the credit unions activity in the circumstances of contemporary waves of the financial crisis is presented. After examining available and possible theoretical and practical aspects the assumptions from the analyzed material are proposed. The article discusses the development of credit unions and the factors affecting the credit union managers approach to the credit union system develop-ment prospects. Despite an occurrence of the recent commercial banks global situation concerning the possible disappointment of consumers – credit unions are one of the best institutions for further financial sustainability in the retail credit markets.