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June 11, 2009
Outgoing WOCCU Chairman talks about what credit unions can do for the world economy. An Irish credit union receives a favourable ruling on a bad investment.
Madison WI — CUs Draw Strength from Worldwide Presence
Credit unions’ ethical leadership has given them both integrity and strength during the current financial crisis, according to Melvin Edwards, World Council of Credit Unions (WOCCU) chair and representative from the Caribbean Confederation of Credit Unions to the WOCCU board. But credit unions can gain even greater influence by speaking as a single global body, he adds, supporting credit unions in developing countries and increasing the movement’s influence worldwide.
“Credit unions are engines of social and economic development, and too many governments have missed the value of their influence,” said Edwards, a native of St. Kitts & Nevis whose two-year term as WOCCU chair concludes in July at WOCCU’s World Credit Union Conference in Barcelona, Spain. “Credit unions everywhere need to recognize that we exist as a global movement, and we need to speak in one voice.” Much of the credit unions’ strength is based on their financial transparency, not-for-profit cooperative natures and focus on member service, aspects that set them apart from many for-profit financial institutions.
Their emphasis on education helps financially strengthen not only the credit unions, but also the members they serve, Edwards said. In the end, credit unions’ “people helping people“ philosophy enables them to play a vital role in growing the movement in developing countries and in honing individual members’ and their own capabilities to weather economic storms like the ongoing global financial crisis.
“We need to invest more, not only in educating ourselves, but also our members, correcting their assumptions about easy credit and refocusing them on increased savings and safe investments,“ Edwards added. “The more members know about managing their own funds, the easier it will be for them to keep their credit unions safe, accountable and honest.” During Edwards’ tenure as chair, WOCCU has expanded its membership to include 40 systems or institutions representing 69 countries. And it has increased its influence with legislative and regulatory bodies, including the Basel Committee on Banking Supervision, International Accounting Standards Board, European Union, Group of 20 (G-20) Nations and others. WOCCU issued a set of International Consumer Protection Principles designed to set member service standards for credit unions around the world last year, and WOCCU’s technical development efforts have employed new technology to reach the rural poor in Mexico, a program it hopes to expand to other countries later this year.
In addition to helping WOCCU reach some key milestones, Edwards gained much from a personal standpoint during his 24 months as chair. The lessons learned can benefit all credit union executives who immerse themselves in the global movement. www.woccu.org
Meath Ireland – Slane Credit Union to Get €700,000 Refund
It is good news from the Financial Services Ombudsman Joe Mead for Slane Credit Union.
The credit union will receive a €700,000 refund from its now worthless investment in ISTC bonds.
The credit union appealed after being told by its financial advisor that the investment was safe. ISTC is an unregulated financial institution, one of the first victim of the global economic crisis and rescued from bankruptcy.
Mead said the risks were not properly explained.