U.S. CUs a 'one-trick pony' in co-ops' capital formation

MADISON, Wis. (1/8/07)--Credit unions in the U.S. face a challenge that is unique to them for capital formation. Their only tool available is retained earnings, according to a new report from the Filene Research Institute.

"Capital Acquisition in North American and European Cooperatives" compares the U.S. credit union cooperative model with agricultural cooperatives and credit cooperatives of Europe.

Because retained earnings are their only capital base, U.S. credit unions are the "one-trick pony" in the world of cooperatives, according to George Hofheimer, Filene's chief research officer. (CUNA News Now)