A credit union is a member-owned financial institution organized to encourage savings and to provide loans with competitively low interest rates to members. In New York, as elsewhere, credit unions have evolved into sophisticated financial institutions offering a variety of services to members. New York law has detailed and complex requirements for the formation of credit unions and for their supervision, which is entrusted to the state banking department.
Because of the complexity of the laws on credit unions, an organization seeking to set one up needs expert assistance. Serious consideration should be given to joining an existing credit union before deciding to start a new one.