Sunday, July 20, 2008

Mohamad Hatta

Mohammad Hatta 1902-1980
Mohammed Hatta was born in Bukitinggi, West Sumatra. He grew up in a traditionalist Muslim family. Both his grandfather and his father were conservative ulama (scholars of Islam). At secondary school Hatta came under the influence of modernist Muslim teachers who spread social and economic change in Indonesia. In his youth, he became a member of the nationalist Young Sumatrans Union. Hatta studied economy in Rotterdam from 1923 to 1932, and he became president of the Perhimpunan Indonesia (PI), the society of Indonesian students in the Netherlands. A true democrat in heart and soul, he emerged as a fighter for independence.
Because of an article about Dutch colonial administration in the journal of the PI, Indonesia Merdeka, Hatta was arrested in 1927. He was accused of high treason, but acquitted by a Dutch court of law. He was supported by the Dutch poet and socialist Henriette Roland Holst and remained her friend for the rest of his life. When his study at Rotterdam Academy was finished, Hatta returned to Indonesia. Full of anger about the repressive methods of the colonial government, Hatta became a leader of the so-called non-cooperative nationalists. They did not preach revolution but advocated alterations within the existing order. In 1934 he was arrested and banished to Upper-Digul (New-Guinea) and later to Bandaneira (the Moluccas).
Hatta was accused of high treason twice: in 1927 in Holland and in 1934 in the Dutch Indies. His comment was: 'the first time a Dutch court of law acquitted me, the second time world history did so.' Indeed, in 1942 Hatta was liberated by the Japanese military government in Indonesia. Hatta became an adviser to the Japanese military government and, like many Indonesian nationalists, cooperated in a quiet way with the Japanese occupational power. Together with Sukarno, Hatta became a prominent Indonesian nationalist leader. Pushed by Indonesian youth, they proclaimed Indonesian independence on August 17, 1945. Hatta became vice president of the new Republic. During the negotiations about the transfer of sovereignty, Mohammad Hatta headed the delegation of the Indonesian Republic. He was vice president from 1946 to 1956, and prime minister from 1948 to 1950. Hatta died in Jakarta in 1980.


Letters from captivity
The correspondence between Hatta and Johannes Post started soon after Hatta was transferred from imprisonment in Upper-Digul (New-Guinea) to the Banda islands (the Moluccas). In 1934 captivity began in Tanah Merah, a village in West New Guinea where Hatta was had been placed under permanent guard in a small dwelling. In Upper-Digul everybody suffered from malaria. Protest eventually led to the transfer of Hatta and his companion Sutan Shahrir to Banda Neira. They received a monthly allowance of 75 Dutch guilders, which enabled them to rent a house. Here, Hatta gave private lessons to the children of his fellows. Hatta assisted establishment of an agrarian cooperative. He tried to gather as many books as possible during captivity: 'My philosophy of life is this: struggle while one is free; if people have clipped one's wings, then devote oneself to the pursuit of knowledge.'
To enhance his knowledge, Hatta frequently appealed to his old Dutch friends Henriette Roland Holst [papers] and Johannes Post. Henriette Roland Holst, the Dutch poet and socialist, had sided with the Indian and Indonesian nationalists during the twenties and supported them in word and deed, and so did their mutual friend Johannes Post. Johannes Eduard Post (1880-1945) was an idealistic businessman in Amsterdam who granted loans and assistance to strikers and conscientious objectors. He was active in the anti-colonial movement, and this is where he befriended Hatta and other Indonesian students in Holland.
The letters from Hatta are included in the papers of Johannes Post at the IISH, the letters from Post to Hatta could not be retrieved.

Friday, July 18, 2008

Mohammad Hatta

Dr. H. Mohammad Hatta (disebut juga Bung Hatta), Lahir di Bukittinggi 12 Agustus 1902 – dan wafat di Jakarta 14 Maret 1980) adalah pejuang, negarawan, dan juga Wakil Presiden Indonesia yang pertama. Ia mundur dari jabatan wakil presiden pada tahun 1956, karena berselisih dengan Presiden Soekarno. Hatta dikenal sebagai Bapak Koperasi Indonesia.

Nama yang diberikan oleh orang tuanya ketika dilahirkan adalah Muhammad Athar. Anak perempuannya bernama Meutia Hatta menjabat sebagai Menteri Negara Pemberdayaan Perempuan dalam Kabinet Indonesia Bersatu pimpinan Presiden Susilo Bambang Yudhoyono. Ia dimakamkan di Tanah Kusir, Jakarta.

Latar belakang dan pendidikan
Hatta lahir dari keluarga ulama Minangkabau, Sumatra Barat. Ia menempuh pendidikan dasar di Sekolah Melayu, Bukittinggi, dan kemudian pada tahun 1913-1916 melanjutkan studinya ke Europeesche Lagere School (ELS) di Padang. Saat usia 13 tahun, sebenarnya beliau telah lulus ujian masuk ke HBS (setingkat SMA) di Batavia (kini Jakarta), namun ibunya menginginkan Hatta agar tetap di Padang dahulu, mengingat usianya yang masih muda. Akhirnya Bung Hatta melanjutkan studi ke MULO di Padang, baru kemudian pada tahun 1919 beliau pergi ke Batavia untuk studi di HBS. Beliau menyelesaikan studinya dengan hasil sangat baik, dan pada tahun 1921, Bung Hatta pergi ke Rotterdam, Belanda untuk belajar ilmu perdagangan/bisnis di Nederland Handelshogeschool (bahasa inggris: Rotterdam School of Commerce, kini menjadi Erasmus Universiteit). Di Belanda, ia kemudian tinggal selama 11 tahun. Saat masih di sekolah menengah di Padang, Bung Hatta telah aktif di organisasi, antara lain sebagai bendahara pada organisasi Jong Sumatranen Bond cabang Padang. Pada tangal 27 November 1956, Bung Hatta memperoleh gelar kehormatan akademis yaitu Doctor Honoris Causa dalam Ilmu Hukum dari Universitas Gadjah Mada di Yoyakarta. Pidato pengukuhannya berjudul “Lampau dan Datang”.

Saat berusia 15 tahun, Hatta merintis karir sebagai aktivis organisasi, sebagai bendahara Jong Sumatranen Bond Cabang Padang. Kesadaran politik Hatta makin berkembang karena kebiasaannya menghadiri ceramah-ceramah atau pertemuan-pertemuan politik. Salah seorang tokoh politik yang menjadi idola Hatta ketika itu ialah Abdul Moeis.

Pada usia 17 tahun, Hatta lulus dari sekolah tingkat menengah (MULO). Lantas berangkat ke Batavia untuk melanjutkan studi di Sekolah Tinggi Dagang Prins Hendrik School. Di Batavia, ia juga aktif di Jong Sumatranen Bond Pusat, juga sebagai Bendahara.

Hatta mulai menetap di Belanda semenjak September 1921. Ia segera bergabung dalam Perhimpunan Hindia (Indische Vereeniging). Saat itu, telah tersedia iklim pergerakan di Indische Vereeniging. Sebelumnya, Indische Vereeniging yang berdiri pada 1908 tak lebih dari ajang pertemuan pelajar asal tanah air. Atmosfer pergerakan mulai mewarnai Indische Vereeniging semenjak tibanya tiga tokoh Indische Partij (Suwardi Suryaningrat, Douwes Dekker, dan Tjipto Mangunkusumo) di Belanda pada 1913 sebagai eksterniran akibat kritik mereka lewat tulisan di koran De Expres.


Perjuangan
Saat berusia 15 tahun, Hatta merintis karir sebagai aktivis organisasi, sebagai bendahara Jong Sumatranen Bond (JSB) Cabang Padang. Di kota ini Hatta mulai menimbun pengetahuan perihal perkembangan masyarakat dan politik, salah satunya lewat membaca berbagai koran, bukan saja koran terbitan Padang tetapi juga Batavia. Lewat itulah Hatta mengenal pemikiran Tjokroaminoto dalam surat kabar Utusan Hindia, dan Agus Salim dalam Neratja.

Kesadaran politik Hatta makin berkembang karena kebiasaannya menghadiri ceramah-ceramah atau pertemuan-pertemuan politik. Salah seorang tokoh politik yang menjadi idola Hatta ketika itu ialah Abdul Moeis. “Aku kagum melihat cara Abdul Moeis berpidato, aku asyik mendengarkan suaranya yang merdu setengah parau, terpesona oleh ayun katanya. Sampai saat itu aku belum pernah mendengarkan pidato yang begitu hebat menarik perhatian dan membakar semangat,” aku Hatta dalam Memoir-nya. Itulah Abdul Moeis: pengarang roman Salah Asuhan; aktivis partai Sarekat Islam; anggota Volksraad; dan pegiat dalam majalah Hindia Sarekat, koran Kaoem Moeda, Neratja, Hindia Baroe, serta Utusan Melayu dan Peroebahan.

Pada usia 17 tahun, Hatta lulus dari sekolah tingkat menengah (MULO). Lantas ia bertolak ke Batavia untuk melanjutkan studi di Sekolah Tinggi Dagang Prins Hendrik School. Di sini, Hatta mulai aktif menulis. Karangannya dimuat dalam majalah Jong Sumatera, “Namaku Hindania!” begitulah judulnya. Berkisah perihal janda cantik dan kaya yang terbujuk kawin lagi. Setelah ditinggal mati suaminya, Brahmana dari Hindustan, datanglah musafir dari Barat bernama Wolandia, yang kemudian meminangnya. “Tapi Wolandia terlalu miskin sehingga lebih mencintai hartaku daripada diriku dan menyia-nyiakan anak-anakku,” rutuk Hatta lewat Hindania.

Pemuda Hatta makin tajam pemikirannya karena diasah dengan beragam bacaan, pengalaman sebagai Bendahara JSB Pusat, perbincangan dengan tokoh-tokoh pergerakan asal Minangkabau yang mukim di Batavia, serta diskusi dengan temannya sesama anggota JSB: Bahder Djohan. Saban Sabtu, ia dan Bahder Djohan punya kebiasaan keliling kota. Selama berkeliling kota, mereka bertukar pikiran tentang berbagai hal mengenai tanah air. Pokok soal yang kerap pula mereka perbincangkan ialah perihal memajukan bahasa Melayu. Untuk itu, menurut Bahder Djohan perlu diadakan suatu majalah. Majalah dalam rencana Bahder Djohan itupun sudah ia beri nama Malaya. Antara mereka berdua sempat ada pembagian pekerjaan. Bahder Djohan akan mengutamakan perhatiannya pada persiapan redaksi majalah, sedangkan Hatta pada soal organisasi dan pembiayaan penerbitan. Namun, “Karena berbagai hal cita-cita kami itu tak dapat diteruskan,” kenang Hatta lagi dalam Memoir-nya.

Selama menjabat Bendahara JSB Pusat, Hatta menjalin kerjasama dengan percetakan surat kabar Neratja. Hubungan itu terus berlanjut meski Hatta berada di Rotterdam, ia dipercaya sebagai koresponden. Suatu ketika pada medio tahun 1922, terjadi peristiwa yang mengemparkan Eropa, Turki yang dipandang sebagai kerajaan yang sedang runtuh (the sick man of Europe) memukul mundur tentara Yunani yang dijagokan oleh Inggris. Rentetan peristiwa itu Hatta pantau lalu ia tulis menjadi serial tulisan untuk Neratja di Batavia. Serial tulisan Hatta itu menyedot perhatian khalayak pembaca, bahkan banyak surat kabar di tanah air yang mengutip tulisan-tulisan Hatta.

Perangko Satu Abad Bung Hatta diterbitkan oleh PT Pos Indonesia tahun 2002Hatta mulai menetap di Belanda semenjak September 1921. Ia segera bergabung dalam Perhimpunan Hindia (Indische Vereeniging). Saat itu, telah tersedia iklim pergerakan di Indische Vereeniging. Sebelumnya, Indische Vereeniging yang berdiri pada 1908 tak lebih dari ajang pertemuan pelajar asal tanah air. Atmosfer pergerakan mulai mewarnai Indische Vereeniging semenjak tibanya tiga tokoh Indische Partij (Suwardi Suryaningrat, Douwes Dekker, dan Tjipto Mangunkusumo) di Belanda pada 1913 sebagai eksterniran akibat kritik mereka lewat tulisan di koran De Expres. Kondisi itu tercipta, tak lepas karena Suwardi Suryaningrat (Ki Hadjar Dewantara) menginisiasi penerbitan majalah Hindia Poetra oleh Indische Vereeniging mulai 1916. Hindia Poetra bersemboyan “Ma’moerlah Tanah Hindia! Kekallah Anak-Rakjatnya!” berisi informasi bagi para pelajar asal tanah air perihal kondisi di Nusantara, tak ketinggalan pula tersisip kritik terhadap sikap kolonial Belanda.

Di Indische Vereeniging, pergerakan putra Minangkabau ini tak lagi tersekat oleh ikatan kedaerahan. Sebab Indische Vereeniging berisi aktivis dari beragam latar belakang asal daerah. Lagipula, nama Indische –meski masih bermasalah– sudah mencerminkan kesatuan wilayah, yakni gugusan kepulauan di Nusantara yang secara politis diikat oleh sistem kolonialisme belanda. Dari sanalah mereka semua berasal.

Hatta mengawali karir pergerakannya di Indische Vereeniging pada 1922, lagi-lagi, sebagai Bendahara. Penunjukkan itu berlangsung pada 19 Februari 1922, ketika terjadi pergantian pengurus Indische Vereeniging. Ketua lama dr. Soetomo diganti oleh Hermen Kartawisastra. Momentum suksesi kala itu punya arti penting bagi mereka di masa mendatang, sebab ketika itulah mereka memutuskan untuk mengganti nama Indische Vereeniging menjadi Indonesische Vereeniging dan kelanjutannya mengganti nama Nederland Indie menjadi Indonesia. Sebuah pilihan nama bangsa yang sarat bermuatan politik. Dalam forum itu pula, salah seorang anggota Indonesische Vereeniging mengatakan bahwa dari sekarang kita mulai membangun Indonesia dan meniadakan Hindia atau Nederland Indie.

Pada tahun 1927, Hatta bergabung dengan Liga Menentang Imperialisme dan Kolonialisme di Belanda, dan di sinilah ia bersahabat dengan nasionalis India, Jawaharlal Nehru. Aktivitasnya dalam organisasi ini menyebabkan Hatta ditangkap pemerintah Belanda. Hatta akhirnya dibebaskan, setelah melakukan pidato pembelaannya yang terkenal: Indonesia Free.

Pada tahun 1932 Hatta kembali ke Indonesia dan bergabung dengan organisasi Club Pendidikan Nasional Indonesia yang bertujuan meningkatkan kesadaran politik rakyat Indonesia melalui proses pelatihan-pelatihan. Belanda kembali menangkap Hatta, bersama Soetan Sjahrir, ketua Club Pendidikan Nasional Indonesia pada bulan Februari 1934. Hatta diasingkan ke Digul dan kemudian ke Banda selama 6 tahun.

Pada tahun 1945, Hatta secara aklamasi diangkat sebagai wakil presiden pertama RI, bersama Bung Karno yang menjadi presiden RI sehari setelah ia dan bung karno memproklamasikan kemerdekaan Indonesia. Oleh karena peran tersebut maka keduanya disebut Bapak Proklamator Indonesia.

Ketekunan membawa hasil

Ketekunan berlatih juga menjadi kunci keberhasilan siswa SMA Kolese De Britto, Ignatius Yudha Krisdhanarto (18), memperoleh nilai 10 untuk Ekonomi. ”Saya belajar dari soal-soal yang dikerjakan, materinya dan berbagai model soal untuk materi tersebut. Dari situ, saya buat mind map untuk mempermudah belajar,” katanya.

Saut Sandraiz (19) menyatakan tidak menyangka akan meraih nilai tertinggi untuk ujian nasional tingkat sekolah menengah atas se-Lampung 2008.

Namun, saat ditemui di sekolahnya, SMAN 2 Bandar Lampung, Rabu pekan lalu, remaja itu mengaku memang belajar sangat ngoyo karena ingin mendapatkan hasil terbaik.

Cerdas, tekun, bahkan ngoyo menjadi modal para siswa yang berhasil mendapatkan nilai ”sempurna” alias 10 pada mata pelajaran yang diujikan pada ujian nasional. Prestasi mereka tidak lepas dari dukungan dan dorongan dari orangtua serta guru sekolah.

Selain Saut, Kompas menemui Sulistyo Putranto yang juga dari Lampung, Anggun Maretha Indraswari dan Yuniarti dari Ogan Ilir, Sumatera Selatan; Arrosyi Nilasari dan Ignatius Yudha Krisdhanarto dari DI Yogyakarta; Yosua, Ridho Dewanto, dan Bestman Simamora dari Balikpapan.

Saut menuturkan, ayahnya, DL Tobing, adalah sosok yang perfeksionis dan keras. Ayahnya selalu menekankan kepada Saut untuk bekerja dengan hasil maksimal. ”Saya termotivasi untuk mendapatkan hasil terbaik dan menjadi contoh untuk tiga adik saya,” kata Saut, sulung dari empat bersaudara.

Untuk mencapai targetnya, Saut mengikuti baik bimbingan belajar maupun uji coba tes UN di sekolah ataupun di lembaga lain di luar sekolah. Di rumah, ia rajin mengulang pelajaran. Jika biasanya belajar dua jam sehari, memasuki semester kedua kelas tiga, ia menambah waktu belajar selama ia mampu. ”Saya maunya belajar terus,” kata Saut yang juga meraih nilai tinggi dalam ujian nasional SMP 2005, yaitu 27,49 untuk tiga mata pelajaran.

Saat ujian nasional SMA 2008, Saut mendapat nilai akumulasi 57,40. Nilai 10 ia peroleh untuk mata pelajaran Biologi, Matematika 9,75, Kimia 9,75, Fisika 9,5, Bahasa Indonesia 9,20, dan Bahasa Inggris 9,20.

Sama seperti Saut, Sulistyo rajin mengikuti bimbingan belajar dan uji coba tes UN yang diselenggarakan lembaga bimbingan belajar. Sebagai anak kos, Sulistyo termasuk sangat disiplin. Ia belajar keras dengan kesadaran sendiri, tanpa diawasi orang tuanya yang tinggal di kompleks PT Gunung Madu Plantation di Kabupaten Tulang Bawang, Lampung. Padahal, sebagai remaja, godaan untuk bermain bersama teman-temannya cukup besar.

”Orangtua sudah mengirim saya jauh-jauh ke Bandar Lampung, saya harus membalas dengan memberikan yang terbaik,” ujar Sulistyo, sulung dari dua bersaudara itu.

Hasilnya, Sulistyo mendapat nilai tertinggi kedua di Lampung, 56,75. Nilai 10 ia peroleh untuk mata pelajaran Biologi. Adapun Matematika 9,75, Fisika 9,50, Kimia 9,50, Bahasa Indonesia 9,40, dan Bahasa Inggris 8,60.

Kini Saut dan Sulistyo diterima di Universitas Gadjah Mada Yogyakarta. ”Saya diterima di Fakultas Teknik Jurusan Teknik Kimia,” kata Sulistyo.

Berbeda dengan Saut dan Sulistyo, Anggun dan Yuniarti tidak cukup beruntung bisa ikut bimbingan belajar di luar sekolah.

Meski demikian, Anggun berhasil duduk di peringkat lima besar nilai tertinggi tingkat SMA se-Sumatera Selatan. Nilai kumulatifnya 54,6. Pada Matematika ia mendapat nilai 10.

Saat ditemui di rumahnya, di Kompleks RSS Bhakti Guna, Kecamatan Indralaya, Kabupaten Ogan Ilir, Sumatera Selatan, Rabu, Anggun yang baru saja lulus dari SMA Negeri I Indralaya tengah menyapu halaman.

Siswa jurusan IPS itu menuturkan, ia rajin menabung uang jajannya agar bisa membeli buku-buku latihan soal ujian.

Pelajaran tambahan yang diperoleh Anggun hanya dari sekolah yang berlangsung siang seusai jam pelajaran sampai sore hari. Setelah itu, dia belajar bersama beberapa teman sekolahnya untuk mengulang pelajaran.

Kepala Sekolah SMA Negeri 1 Indralaya Puadi menyatakan, Anggun termasuk siswa yang cerdas. Ia sering menduduki peringkat empat di sekolah dengan nilai rata-rata 8,3. ”Selain itu, sebelum UN berlangsung, kami berdialog dengan orangtua siswa dan meminta agar ada jam belajar di rumah,” ucap Puadi.

Menurut Anggun, keberhasilannya berkat dukungan orangtua dan para guru. Mereka menyemangati dan mendampingi proses belajar Anggun.

Yuniarti, teman Anggun di jurusan IPS di sekolah yang sama, juga mendapat nilai 10 untuk Matematika. Ia tinggal di Desa Lorok, Kecamatan Indralaya.

Menurut Yuniarti, ia tidak pernah malu bertanya kepada guru. Ia sering ke perpustakaan sekolah untuk menambah pemahaman dari buku-buku pelajaran yang tidak ia miliki. Ia juga rajin mengikuti kelompok belajar bersama di sekolah.

Di Yogyakarta, Arrosyi Nilasari (18), siswa jurusan IPS SMAN 6, mengaku bangga memperoleh nilai 10 dalam Matematika. ”Rasanya puas sekali. Kerja keras, latihan soal yang terkadang sampai membosankan, tidak sia-sia,” katanya.

Ketekunan berlatih juga menjadi kunci keberhasilan siswa SMA Kolese De Britto, Ignatius Yudha Krisdhanarto (18), memperoleh nilai 10 untuk Ekonomi. ”Saya belajar dari soal-soal yang dikerjakan, materinya dan berbagai model soal untuk materi tersebut. Dari situ, saya buat mind map untuk mempermudah belajar,” katanya.

Di Kalimantan Timur, ada Yosua, murid jurusan IPA Internasional SMAN 1 Balikpapan yang mendapat nilai 10 untuk Matematika.

Sebagaimana siswa lain, kunci keberhasilannya adalah rajin belajar, mengerjakan soal, serta ikut bimbingan belajar. Hal serupa dilakukan Ridho Dewanto dan Bestman Simamora, teman Yosua yang juga meraih nilai 10 untuk Matematika. Hal yang sama dilakukan Windu Wuringhati, siswa IPS di SMAN 1 Balikpapan, yang meraih nilai 10 untuk Ekonomi.

Mereka berusaha membuktikan masih ada harapan bagi bangsa Indonesia. Tentu saja dengan ketekunan dan kerja keras.
Kompas.com

Thursday, July 17, 2008

Mohammad Hatta

Mohammad Hatta (August 12, 1902 - March 14, 1980) was born in Bukittinggi, West Sumatra, Dutch East Indies (now Indonesia). He was Indonesia's first vice president, later also serving as the country's Prime Minister. Known as "The Proclamator", he and a number of Indonesians, including the first president of Indonesia, Sukarno, fought for the independence of Indonesia from the Dutch. Despite his efforts to gain Indonesian independence, he studied in the Netherlands from 1921 until 1932. Moreover, since his early education, he studied in Dutch schools in Indonesia.

Mohammad Hatta is often remembered as Bung Hatta ('Bung' is an affectionate title used to address colleagues, popular in the early 1900s and is still used by Indonesians).

CU in USA

In the United States, credit unions have 86 million members, which is 43.47% of the economically active population. U.S. credit unions are not-for-profit, tax-exempt organizations.

U.S. credit unions can be chartered by either the federal government ("federal credit unions")or by a state. All federal credit unions and the vast majority of state-chartered credit unions have federal deposit insurance (called "share insurance") through the National Credit Union Share Insurance Fund of at least $100,000 per member. This federal deposit insurance is backed by the full faith and credit of the United States government and is administered by the National Credit Union Administration.As of December 2006, the National Credit Union Share Insurance Fund had a higher insurance fund capital ratio than the FDIC Bank Insurance Fund. U.S. credit unions also typically have higher equity capital ratios than U.S. banks.

As of the end of 2007, the National Credit Union Share Insurance Fund insured more than $560 billion in deposits at 8,101 not-for-profit cooperative US credit unions. For comparison, the Federal Deposit Insurance Corporation insured more than $4,000 billion in deposits at 8,560 banks and thrift institutions. The NCUA and the FDIC are both independent federal agencies backed by the full faith and credit of the US government.

United States credit unions typically pay higher dividend (interest) rates on shares (deposits) and charge lower interest on loans than banks. Credit unions therefore often have a higher cost of assets (i.e. interest expense as a percentage of average assets) than commercial banks, with aggregate U.S. credit union cost of assets being higher than the aggregate U.S. bank cost of assets in eight of the thirteen years between 1995 and 2007. Credit union revenues (from loans and investments) do, however, need to exceed operating expenses and dividends (interest paid on deposits) in order to maintain capital and solvency.

Federal credit unions may apply to the National Credit Union Administration for Low-Income Credit Union or LICU status. To qualify for LICU status, the majority of the credit union's membership meet specific requirements in order to be considered "low-income". This LICU status allows the credit unions to benefit from certain NCUA programs to enhance its capacity to serve underserved populations who may otherwise lack access to credit or other financial services. In addition, some state regulators also provide for similar low-income designations.

Unlike banks, which were caught redlining underserved areas in the 1970s, credit unions are not subject to federal "community reinvestment" requirements—essentially because credit unions, by their nature and mission of "people helping people," already meet the financial needs of a broad spectrum of people that fall within their fields of membership, and play an active role in community development and growth. Because of that, credit unions have successfully lobbied to exempt themselves from the (U.S. federal) Community Reinvestment Act, the law that forces banks to provide services in low-income areas.

2006 Home Mortgage Disclosure Act data shows that U.S. credit unions approved 69% of low- and moderate-income borrowers' mortgage applications that they received, versus a 47% low/mod-income borrower approval rate for other U.S. mortgage lenders, and also that U.S. credit unions approved 62% of minority members' mortgage applications, versus a 51% minority approval rate for other U.S. mortgage lenders. The 2006 Home Mortgage Disclosure Act data also shows that 25.2% of all U.S. credit union mortgage originations were mortgages for low- or moderate-income borrowers, versus a 20.6% low- or moderate-income borrower mortgage origination percentage for other U.S. mortgage lenders. The National Credit Union Administration, however, has long discouraged U.S. credit unions from giving members loans that they may not be able to afford to repay and has forbidden other types of predatory lending and abusive credit practices. Federal credit unions are also forbidden from charging prepayment penalties on loans.

Membership restrictions
U.S. governmental regulatory agencies require that credit unions restrict their membership to defined segments of the population, such as people who live, work, worship, or attend school in a well-defined geographic area; employees of specific companies or trades; members of specific non-profit groups (alumni associations, conservation or other advocacy organizations, lodges, churches, or the like); or a particular occupational group (teachers, doctors, etc.). In the U.S., this is referred to as a credit union's "field of membership." Internationally it is referred to as the 'common bond' or 'bond of association'.

Mergers of smaller credit unions with disparate membership bases often result in a credit union with a wide variety of ways to qualify to join; thus, a credit union may have a much broader "field of membership" than that credit union's name would imply.

Credit unions generally follow the principle of "once a member, always a member," which allows current credit union membership to continue even if the individual would no longer qualify to be a member (such as having changed professions or moved outside the area). However, many credit unions reserve the right of expulsion against a member who causes a financial loss. Some credit unions also have expelled members, including elected Board and Supervisory Committee volunteers, for making "whistleblower" complaints against credit union management.

If a member voluntarily terminates their membership, they may or may not be eligible to rejoin, depending on the credit union's policies and government regulations.

Credit unions may typically be chartered to serve a specific employee or associational group or groups (often called a Select Employee Group or "SEG Charter"), all members of a trade, industry, or profession (a "TIP Charter"), or have a "Community Charter" (typically a field of membership of anyone who lives, works, goes to school, or attends religious services in a particular city, county, or counties). In the United States, when a credit union converts to a Community Charter from a SEG Charter or TIP Charter, it can continue to serve its existing members as well as anyone who lives, works, worships, or attends school within its new geographical field of membership, but cannot admit new members from its former SEG(s) or TIP. Similarly, a credit union that converts to a TIP or SEG charter from a different charter type can no longer admit new members from its old field of membership.

Typically, members' families -such as immediate family or household members -- can also join the credit union. In the United States, the National Credit Union Administration or a state regulator -- depending upon whether or not the credit union is chartered by the federal government or by a state -- decides whether or not to approve or deny proposed field of membership expansions or charter conversions to other credit union charters, and similar procedures are typically used in other countries.

Credit unions and banks in the United States
Tension has always existed between member-owned cooperative credit unions and for-profit banks in the US. When credit unions were first organizing in the United States in the early twentieth century, the banking industry was opposed, remaining so ever since. Despite the fact that credit unions continue to hold a very small share of the financial services market, banks and bank trade associations consistently put anti-credit union legislation at the top of their agendas.

Due to their status as not-for-profit, member-owned financial institutions with no source of secondary investment capital, credit unions in the United States are exempt from federal and state income taxes (but, not from employment or property taxes). Additionally, credit union members pay income tax on dividends earned through financial participation in the credit union; this is similar to the taxation structure enjoyed by many banks incorporated under Subchapter S of Chapter 1 of the Internal Revenue Code.

Bank holding companies and their affiliates aggressively compete to provide services to credit unions through their ATM networks, corporate checking accounts, and certificate of deposit programs. In 2007, the American Bankers Association barred credit union employees from attending ABA sponsored educational seminars. This includes online classes that require registration. Based upon the pretext that the ABA only wants to serve its members, the American Bankers Association continues to attempt to weaken credit unions and take back the 6% market share that credit unions currently hold.

Credit unions maintain that no matter their size or field of membership, the fact that they are owned by their members and not shareholders makes them fundamentally different from banks.

Credit Union-to-Bank Conversions
Since 1995, over thirty U.S. credit unions have converted from credit union charters to bank charters. These conversions are generally initiated by a credit union's leadership team, rather than from the rank-and-file membership, and have created sharp controversy within the credit union industry.Some have questioned whether these conversions are in the best interests of the credit union members, and have compared them to the mutual savings bank conversion raids of the 1980s.

Like the mutual savings raids, credit union conversions have been very lucrative for executives and directors of converting credit unions. CU Financial, a consulting firm that helps credit union management execute these conversions, has explained in marketing materials that if a credit union with $50 million in capital converts to a stock bank, under certain conditions a payoff in the “$1.2 million range for each director is not out of the question," while executives might also expect additional stock compensation that "could lead to a $10 million plus ownership stake for a capable CEO".

Members of at least six credit unions have organized to oppose their management's conversion proposals, objecting that this insider enrichment comes at the detriment of credit union members. They point out that while insiders have made windfall profits, most members have lost their ownership stake without compensation, and face worse rates and fees after the conversion. Comparisons of interest rates show that credit unions that have converted to banks now charge their members more for loans, and pay less for savings Member groups have included Save Columbia Credit Union, Save First Basin Credit Union, and DFCU Owners United.

The National Center for Member Trust is a consumer protection non-profit "formed to support the member-owners of credit unions that are attempting to convert to banks." The Coalition for Credit Union Charter Options is an advocacy group for converting credit unions. UC Berkeley Professor of Financial Institutions James Wilcox is an expert who has released a number of studies on the issue. His findings are summarized in Credit Union Conversions: Ripe for Abuse … and Reforms, published in the Credit Union Times July of 2006.

CU in CANADA

CANADA has the highest per capita use of credit unions in North America, with more than a third of the population enrolled in one. (ref: World Council of Credit Unions) They are concentrated in Quebec, where they are known as caisses populaires (people's banks), and on the Western prairies. As of Dec. 31 2006 there were 549 member caisses and 5.8 million retail members in the Caisses Populaires Desjardins federation. According to data from Credit Union Central of Canada on the same date there were 10.8 million retail members controlling CAD $193 billion in assets across all of Canada. Aside from Desjardins, other major Canadian credit unions include Vancity, Coast Capital Savings, and Credit Union Atlantic.

Cu In Bristish

In the United Kingdom credit unions are regulated by the Financial Services Authority, or FSA. UK credit unions are classified under two types: type 1 are the smaller CUs while type 2 are larger. From November 2006 many type 2 CUs began offering their members debit card accounts which enabled CU members to obtain funds from any Link ATM. UK credit unions do not offer cheques as these are generally being phased out in UK financial transactions.

Credit unions in the UK now offer a wide range of services to their members; from direct debits to payroll deductions, from being able to send standing orders from their accounts to paying members bills to providing cheaper insurance facilities.

In the U.K. one of the benefits of joining a credit union is the life insurance CU's provide their members free of charge. Also, if a member were to die then their loan value is wiped out with no further charge to the member's account or their family; further, in many cases their savings with the CU are doubled and passed to the next of kin. As recent history has shown, with the Christmas savings club Farepak going bust and hundreds of customers losing all their savings, the CU is a real alternative for providing good savings rates and affordable loans, knowing that customers are protected if the worst happens.

Currently there is a government financial initiative mainly being operated by credit unions to bring financial services to the economically disadvantaged members of society. One aim is to significantly reduce the influence of door step lenders where a £300 loan over 30 weeks may involve paying back around £450; a credit union loan would typically require paying back around £325.

Corporate credit unions

The majority of credit unions are known as natural-person credit unions, and provide service to individual consumers. Corporate credit unions (also known as central credit unions in Canada) also exist, but instead serve the needs of credit unions with operational support, funds clearing tasks as well as product and service delivery. In effect, they serve as a credit union's credit union. The largest corporate credit union in the United States is U.S. Central Credit Union of Lenexa, Kansas, which serves as a central clearing house for corporate credit unions. The two largest corporate credit unions that serve only natural-person credit unions are Western Corporate Federal Credit Union (WesCorp) in San Dimas, California and Southwest Corporate Federal Credit Union in Plano, Texas

Credit Union History

Modern credit union history dates to 1852, when Franz Hermann Schulze-Delitzsch consolidated the learning from two pilot projects, one in Eilenburg and the other in Delitzsch in Germany into what are generally recognized as the first credit unions in the world. He went on to develop a highly successful urban credit union system.

F.W. RaiffeisenIn 1864 Friedrich Wilhelm Raiffeisen founded the first rural credit union in Heddesdorf (now part of Neuwied) in Germany. Although Schulze-Delitzsch can claim chronological precedence, Raiffeisen is often viewed as more important today. Rural communities in Germany faced a far more severe shortage of financial institutions than the cities. They were viewed as unbankable because of very small, seasonal flows of cash and very limited human resources. The organizational methods Raiffeisen refined there, which levered what is today called social capital, have become a hallmark of the global credit union identity.

By the time of Raiffeisen's death in 1888 credit unions had spread to Italy, France, the Netherlands, England and Austria, among other nations. The Raiffeisen name is still used by Raiffeisenbank, the largest banking group in Austria (with subsidiaries throughout Central and Eastern Europe), Rabobank (Netherlands) and similarly-named agricultural credit unions in Germany.

The first credit union in North America, the Caisse populaire de Lévis in Quebec, Canada, began operations on Jan. 23rd, 1901 with a ten cent deposit. Founder Alphonse Desjardins, a reporter in the Canadian parliament, was moved to take up his mission in 1897 when he learned of a Montrealer who had been ordered by the court to pay nearly $5,000 in interest on a loan of $150 from a moneylender. Drawing extensively on European precedents, Desjardins developed a unique parish-based model for Quebec: the caisse populaire.

In the United States, St. Mary's Bank Credit Union of Manchester, NH holds the distinction as the first credit union. Assisted by a personal visit from Desjardins, St. Mary's was founded by French-speaking immigrants to Manchester from Quebec on November 24, 1908. America's Credit Union Museum now occupies the location of the home from which St. Mary's Bank Credit Union first operated.

Pierre Jay, then Massachusetts Commissioner of Banks and Edward Filene, a Bostonian merchant, were central in establishing enabling legislation in Massachusetts in 1909.

Filene also created the Credit Union National Extension Bureau, the forerunner of the Credit Union National Association, which was formed as a confederation of state leagues at a meeting in Estes Park, Colorado in 1934. Attendees at the meeting included Dora Maxwell who would go on to help establish hundreds of credit unions and programs for the poor and Louise McCarren Herring, whose work to form credit unions and ensure their safe operation earned the title of “Mother of Credit Unions” in the United States.

In the same year, Congress passed the Federal Credit Union Act, which permitted credit unions to be organized anywhere in the United States. The legislation allowed credit unions to incorporate under either state or federal law, a system of dual chartering that persists today

Credit Union

A credit union is a cooperative financial institution that is privately owned and controlled by its members, and operated for the purpose of promoting thrift, providing credit at reasonable rates, and providing other financial services to its members. Many credit unions exist to further community development or sustainable international development on a local level.
The World Council of Credit Unions (WOCCU) defines credit unions as "not-for-profit cooperative institutions," but some credit union systems, such as Canada's, view themselves as for-profit cooperative institutions that turn a profit for their members.[citation needed] This difference in viewpoints reflects credit unions' unusual organizational structure, which attempts to solve the principal-agent problem by ensuring that the owners and the users of the institution are the same people. In any case, credit unions generally cannot accept donations and must be able to prosper in a competitive market economy.

Credit unions differ from banks and other financial institutions in that the members who have accounts in the credit union are the owners of the credit union and they elect their board of directors in a democratic one person-one vote system regardless of the amount of money invested in the credit union. Credit union policies governing interest rates and other matters are set by a volunteer Board of Directors elected by and from the membership itself. Only a member of a credit union may deposit money with the credit union, or borrow money from it.As such, credit unions have historically marketed themselves as providing superior member service and being committed to helping members improve their financial health.

In the microfinance context, "Credit unions provide a broader range of loan and savings products at a much cheaper cost [to their members] than do most microfinance institutions."

Credit unions are sometimes called by other names depending upon where the credit union is located; for example, credit unions are called "Savings and Credit Cooperative Organizations" ("SACCOs") in many African countries "to emphasize savings before credit." Credit unions are often called "cooperativas de ahorro y crédito" in Spanish-speaking countries. In Mexico, however, a credit union is typically called a "caja popular."
Credit unions offer many of the same financial services as banks, often using a different terminology. Common services include: share accounts (savings accounts), share draft (checking) accounts, credit cards, share term certificates (certificates of deposit), and online banking.

Credit unions exist in a wide range of sizes, ranging from volunteer operations with a handful of members to institutions with several billion dollars in assets and hundreds of thousands of members. Credit unions are typically smaller than banks, however, with -- as of 2007 -- the average U.S. credit union having $93 million in assets versus $1.53 billion in assets for the average U.S. bank.