The (common) bond of association or common bond is the social connection among the members of credit unions and co-operative banks . Common bonds substitute for collateral in the early stages of financial system development. Like solidarity lending , the common bond has since played an important role in facilitating the development of microfinance for poor people.
5-572: The AFL–CIO Employees Federal Credit Union is a multiple common bond , federally chartered credit union headquartered in Washington, D.C. The credit union was founded in 1952 for members of the AFL–CIO . It currently has two locations serving 9,723 members. AFL–CIO Employees FCU has assets of $ 76 million. The most current annual report lists assets for Fiscal Year ending December 31, 2015, as $ 53.6 million. The economic downturn of 2008 negatively affected
10-665: The United Food and Commercial Workers – Local 400, the National Football League Players Association and the International Union of Painters and Allied Trades , District Council 51. Common bond of association In modern financial systems, common bonds remain a key building block, especially for the strategic networks that underpin many of Europe’s co-operative banks. Hermann Schulze-Delitzsch , an early co-operative organizer, explained
15-663: The concept of the ‘bond of association’ at credit union meetings in this way: ... your own selves and character must create your credit, and your collective liability will require you to choose your associates carefully, and to insist that they maintain regular, sober and industrious habits, making them worthy of credit. In his book People’s Banks (1910), Henry W. Wolff summarized the character of this ‘common bond’ based on his observations of credit unions all over Europe: There are several distinct types of bonds, corresponding to distinctive types of credit unions. For example: A bitter debate between two German credit union pioneers over
20-497: The credit union with large losses in the first half of the year. Employees of the AFL–CIO are eligible for membership in the credit union as are employees of affiliated AFL–CIO International Unions, constitutional departments of the AFL–CIO, and state or local central labor bodies. Eligibility is also extended to members of the Office and Professional Employees International Union – Local 2,
25-569: The nature of bonds of association eventually ended in a tie, with Schulze-Delitzsch’s approach dominating in urban settings, and Raiffeisen’s dominating in rural ones. The bond of association for Schulze-Delitzsche’s larger, more urban ‘people’s banks’ required all members to contribute substantial share capital. He advocated that the banks should receive the protection of limited liability. Friedrich Wilhelm Raiffeisen strongly opposed any share capital requirement. Arguing that most farmers had too little cash to afford share capital, he maintained that
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