Credit unions are financial organizations structured as joint-stock companies, their main objective is to allow the use of credits to their partners. They are seen as auxiliary credit agencies, and are only authorized to work with members. In order for a person to be part of this financial entity, they must first comply with certain requirements stipulated in the Credit Unions Law, they must also acquire a certain amount of shares of the economic company. In order to form a credit union, the prior authorization of the National Banking and Securities Commission is necessary, which is the entity in charge of regularizing them.
Credit unions can be created in different areas or sectors, for example, in the industrial, fishing, livestock, commercial, agricultural sectors, etc. Some of the activities carried out by these unions are: they allow the use of credit to their partners, providing their endorsement in the credits that their partners contract. Work with its members in loan and discount operations of any kind. Take care of the purchase and sale of products made or acquired by its partners. To promote the organization and administration of commercial and industrial companies by which third parties could associate.
Likewise, they can provide their members with the necessary training for the study of different investment projects, in the same way, those partners who have a surplus of cash, will have the possibility of investing them in different terms, which will allow them to have access to rates performance well above those of the banking system.
These types of financial institutions had a long history in the financial system of Mexico, working with great success in the past, however after the strong economic and banking crisis that hit the Mexican country (1994), many of these credit unions disappeared and The creation of a program that will be in charge of activating these organizations again was not considered.
