Why then are credit unions typically smaller than the other depository institutions?

Credit unions are typically smaller than other depository institutions because they operate on a not-for-profit model, focusing on serving their members rather than maximizing profits. This structure limits their ability to grow rapidly compared to larger banks, which often have more extensive resources and capital. Additionally, credit unions are community-oriented, serving specific groups or regions, which inherently caps their membership and, consequently, their asset size. Their emphasis on personalized service and member benefits also means they prioritize member satisfaction over aggressive expansion.