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What are the Responsibilities of the Board of Directors at my Credit Union?

What are the Responsibilities of the Board of Directors at my Credit Union?

Q: What are the responsibilities of the board of directors at my credit union?

 

A: The board of directors at a credit union is responsible for overseeing the credit union’s operations, making strategic decisions and ensuring financial stability. Let’s take a look at the various responsibilities of the board of directors and how they benefit the members of the credit union.

 

Responsibility for the general direction and control of the credit union

 

The board may delegate some operational functions to management, which can include the credit union’s CEO, but it holds responsibility for the credit union’s overall direction, such as its approving the budget and marketing plans.

 

Formulate policies

 

The board of directors is responsible for establishing policies for the credit union. This includes membership criteria, product pricing, any account fees or cash withdrawal limits. The board of directors will also determine dividend rates on share savings accounts and certificates, as well as interest rates on loans for members.

 

Monitor the credit union’s operations

 

While the managers and the CEO will be responsible for carrying out the policies of the credit union and for facilitating its daily function, the board of directors oversees the general operations of the credit union.

 

Ensure the credit union operates in a sound business manner

 

A credit union, while not-for-profit, must be run in a way that ensures it is operating to produce revenue and maintain strong capital. In addition, the board members must ensure that the credit union members’ funds are properly protected.

 

Hire and supervise the CEO

 

It is the responsibility of the board of directors to choose the CEO of the credit union, oversee their performance and ensure they are managing the institution in a way that best benefits the members of the credit union.

 

Offer ongoing financial education

 

The board of directors at a credit union is responsible for offering continued financial education to all credit union members, volunteers and staff. Ongoing education helps members and staff members remain informed so they can maintain their financial health.

 

Advocate for the and influence credit union policies with the government

 

A credit union board of directors may advocate for and influence credit union policies with the government in several ways:

 

  1. Lobbying. The board may hire a lobbyist or contract with a firm to represent the credit union’s interests and concerns to legislators and government officials.

  2. Grassroots Advocacy. The board may encourage credit union members to contact their elected representatives for expressing support of credit union-friendly policies.

  3. Political Action Committees (PACs). Credit union boards may contribute to PACs that support candidates who are sympathetic to the credit union movement.

  4. Participation in Trade Associations. Credit union boards may participate in trade associations representing the credit union industry to the government and advocate for credit union-friendly policies.

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