Introduction to a cooperative financial institution (CFI)
In a financial institution such as a credit union or co-operative bank, a common bond is the social connection among members that serves as collateral in place of more traditional forms of collateral. This allows the financial institution to offer its services to a wider range of people, including those who may not have access …
There are many benefits to saving and taking out loans from cooperative financial institutions like Isikhungo Sabantu FSC. Firstly, they offer very competitive interest rates on savings, meaning that your money will grow at a faster rate than if it were kept in a standard bank account. Second, they provide low-interest loans to help individuals …
What is a Cooperative Financial Institution (CFI)? A cooperative financial institution (CFI) is a type of financial institution it is the umbrella term for deposit taking financial co-operatives that are owned and controlled by its members. CFIs are created to serve the financial needs of their members, rather than to make a profit for a …
What is a Cooperative Financial Institution (CFI)? Read More »
What is a Cooperative? A cooperative, or co-op, is a business or organization owned and operated by a group of people for their mutual benefit. Cooperatives are based on the principles of cooperation, self-help, and self-responsibility. Cooperatives exist in many different sectors of the economy, including agriculture, energy, banking, healthcare, housing, and insurance. In the …
What is the Board of Directors? The board of directors is elected by the shareholders at the Annual General meeting hold each year to oversee the cooperative’s operations and make decisions on its behalf. The board of directors is responsible for setting the cooperative financial institution’s (CFI’s) strategic direction, approving its budget, and ensuring that …
What are Dividends? Dividends are a portion of profits that a company pays to its shareholders. They are typically paid out quarterly, and the amount of the dividend is determined by the board of directors. Dividends represent a return on investment for shareholders, and they can be reinvested in the company to purchase additional shares …
What is a Share? A share is a unit of ownership in a company or other organization. When you buy shares in a company, you become a shareholder. As a shareholder, you have certain rights and privileges, including the right to vote on company decisions and the right to receive dividends. What are the advantages …
