Want to avoid credit union risk? Get rid of credit unions.
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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Ireland is reducing its number of Credit Unions while the UK is increasing its number!
Commission calls for mass mergers among credit unions. Independent.ie
The move to encourage mass mergers among the lending co-operatives could see their number fall to as few as 250 over the next three years, although no official figure has been put on the number of credit unions.
The Archbishop of Canterbury has vowed to put payday lenders out of business by using the Church to build up Britain’s network of credit unions.
The Church of England has already set up a credit union for its own staff, which will advise the other co-ops on how to expand their reach.
The Archbishop, a former oil industry executive and a member of the Parliamentary Commission on Banking Standards, has pointed out that the Church has 16,000 branches in 9,000 communities – more than the banks. In an interview with Total Politics magazine, he said: “I’ve met the head of Wonga and we had a very good conversation and I said to him quite bluntly ‘we’re not in the business of trying to legislate you out of existence, we’re trying to compete you out of existence.’ He’s a businessman, he took that well.”
Read Full Article The Independent UK
Vancity credit union CED award
Vancity is a values-based financial co-operative serving the needs of its more than 492,000 member-owners and their communities through 57 branches in Metro Vancouver, the FraserValley, Victoria and Squamish. As Canada’s largest community credit union, Vancity uses its $17.1 billion in assets to help improve the financial wellbeing of its members while at the same time helping to develop healthy, sustainable communities. Member deposits enable the credit union to loan to other members, businesses and organizations that are creating positive economic, social and environmental impact in their communities. In addition, since 1994 Vancity has given more than $238 million to members through dividends and to communities through grants and community investment initiatives. Vancity is a Living Wage employer and a member of the Global Alliance for Banking on Values, a network of the world’s leading sustainable banks sharing a commitment to achieving triple-bottom-line impact through responsible banking practices. More information about Vancity is available at www.vancity.com.
Final Statement of the Board of Directors of Newbridge Credit Union
Final_Statement_of_the_Board_of_Directors of Newbridge Credit Union
The Church of England is also in the process of setting up a Credit Union
and it wants to use its 16,000 churches to grow the service.
Archbishop wants Sir Hector Sants to lead financial services taskforce
Sants, who resigned from his role as Barclays head of compliance and government and regulatory relations in November due to stress, is said to have been asked by Welby to lead the Archbishop’s Taskgroup on Credit Unions and the Financial Sector.
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