What is a credit union common bond?
One of the requirements of a credit unions is that members have something in common with one another, this is known as a ‘common bond’.
Credit unions are run democratically and in the interests of those people who use their services and fall within the remit of their common bond. This helps to reflect the fact that credit unions are organisations run for the benefit of its members with a social connection.
Membership of a credit union can be governed in several ways. Here in Wales, our credit unions have a common bond based on geography – where people live and/ or work. Other credit unions have a common bond based on work occupation, sector etc. Some credit unions also allow membership to individuals who live in the same household as a member and fall within one of the categories of the common bond. It is the responsibility of the credit union to produce a membership rule that meets their requirements which is why the common bond is an essential part of the legislation governing the financial cooperative.
There may be a credit union in you area that are not part of Credit Unions of Wales – Click here to find you nearest branch