Credit Counseling
Evolution of Credit Cooperatives in the country
In our country early last century and based on ideas and experiences, cooperative financial organizations brought by European immigrants, began to form a credit union first, but with very strange features that make it worth the effort of the pioneers who established, is that unlike Europe and North America where they are promoted and established by politicians, professionals and leading entrepreneurs in our country promoted credit cooperatives founded and developed by ordinary people, artists, merchants, workers who apply their experience of a cooperative credit assistance necessary to establish and start a business.
At first develop an activity that is very simple and far from the actual operation. Available funds arising from savings and loans or donations intended for the newcomers to set up and start a business,
In 1926, that encourages the development of cooperative sector. In the article, the legislature adopted the principles set by the Schultz-Delitzsch in Urban Credit Union, credit unions include the possibility that the re-allocated in proportion to the contribution of capital, thus stimulating the contribution of partners to take advantage of the cooperative.
This law was replaced in 1973 by Law 20,337 which currently regulate the cooperative sector, and who maintains in Article 42, the principle was that for credit unions.
In this way the benefits of solidarity extending credit cooperatives were forced to quickly create sophisticated, with the development of its members, thus expanding their financial operations with services that meet their needs.
Since 1977 began running on Financial Institutions, Law 21,526 which set operations Union Credit Bank, established in one year transition period for agencies to adjust their operation the provisions of the Act (loss of sight accounts).
On the other hand allowed the transformation into commercial banks, cooperatives maintain their legal form, after starting with 30% of capital provided to such entities.
Given this possibility that gives them legal, many organizations choose to convert to banks, some can not do because of their local character, which prevents them, realizing merger takes to complete the minimum capital requirements, etc., have different concepts of financial activities choose continuity as credit unions.