By Greg Allen, banking and finance consultant with GDA Consulting
Aug 3, 2010
Financial regulator Matthew Elderfield and Kieron Brennan, chief executive of the Irish League of Credit Unions: could getting rid of credit unions be at the back of the regulator’s mind? Credit unions will vanish from Ireland over the coming years. A familiar pattern will emerge of small credit unions transferring their business to bigger credit unions. This will continue until what is left is a small number of very large credit unions. These will eventually be sold to much larger international financial institutions until they no longer exist. History, they say, repeats itself. This is exactly what happened to the trustee savings banks.
This is going to come about because of one specific change introduced by the Registrar of Credit Unions in 2009. This requires credit unions to have a non-distributable regulatory reserve of 10% of total assets with effect from 1 October 2009. Currently, most credit unions can comply with this requirement, and because they can achieve the standard, it appears to be reasonable on the face of it. . . . . . . . . . . . . . . . . . .
“The credit union movement is going to die slowly but not obviously. We will be safe from a credit union collapse because there won’t be any credit unions. This is the best risk avoidance of all.”
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Please promote Public Community Banking - banking can be different and better.
Alex Templeton speaking at ECOBATE - UK - 2013
Councils should "bring local banks into being" so they can become "powerful partners" and promote economic, social and environmental benefits to their communities.Published on Mar 21, 2013 Speaking at the 2nd European Conference on Banking and the Economy (ECOBATE) in Winchester, Alex Templeton, Director of the Farm Energy Project, explains how a disfunctional financial system has made it harder to lend to small businesses which in turn impacts communities.