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July 6, 2009
Credit unions have a story to tell, Kenya is getting credit union legislation, a Glasgow credit union is benefiting from bank problems, and a Jamaica credit union encourages young potential businessmen.
NEW YORK NY—Credit Unions Have Good Stories to Tell
Despite continued challenges facing U.S. credit unions, financial cooperatives worldwide have a "good story to tell" in terms of stability, member service and their capability to spread financial risk, according to Pete Crear, World Council of Credit Unions (WOCCU) president and CEO. Crear took the credit unions’ positive message to a United Nations meeting of global economic experts on "Cooperatives in a World in Crisis."
"Credit unions have not contributed to the creation of the global economic crisis," Crear told participants representing 13 countries. "However, through their roles as member-owned and operated financial cooperatives, credit unions are contributing to the healing process."
The group of experts met for three days to examine the role and capabilities of cooperatives, including credit unions and financial cooperatives, to counter the effects of the ongoing economic downturn. Participants, comprised primarily of academics and cooperative association executives from the United States and other countries, each submitted reports prior to the meeting outlining the role of cooperatives in their own countries. To view WOCCU’s report to the U.N. work group in its entirety, go to www.woccu.org/memberserv/advocacy/positionpapers.
Crear’s paper evaluated how credit unions in nine member countries and regions have been affected by market disruptions due to the financial crisis, their inclusion in financial rescue programs and changes made to deposit insurance for both banks and credit unions relative to the crisis. To the best of WOCCU’s knowledge, credit unions have not accepted government funds for bailout purposes, Crear said.
Worldwide, 49,000 credit unions in 96 countries serve more than 177 million people. In 2008, World Council’s technical assistance programs reached 6.5 million people in 16 countries. Learn more about WOCCU’s impact around the world at www.woccu.org.
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NAIROBI, Kenya— Kenyan Government Develops Credit Union Regulations
With the world still reeling from the cascading repercussions of poorly regulated financial institutions, the Kenyan government is working to ensure it gets the rules for credit unions right the first time. Seven months after passing its first credit union law, Kenya’s government is taking its initial steps toward creating effective regulations with the help of World Council of Credit Unions (WOCCU).
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GLASGOW Scotland—People Turn from Banks to Local Credit Union
The bank’s loss is the Glasgow Credit Union’s gain. The credit union is finding that people are withdrawing money from banks and coming to them.
When the credit union started twenty years ago they were given space by the Glasgow City Council use and with an eager persistence to attend staff and Trade Union meetings the credit union was able to get the message across and recruit members.
The credit union is now open to anyone who lives in a G postcode rather than just council workers, the group, which is not-for-profit, has lent more than £250 million to members during the last two decades. And these days it is a genuine rival to the high street banks.
Over the years changes to lending practices has allowed credit unions to offer more services.
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KINGSTON Jamaica—CCCU Supports Small Business with Awards
Thanks to the Churches Cooperative Credit Union (CCCU) four entrepreneurs from local universities are able to start business. It award grants totaling $300,000 to outstanding business students.
The CCCU’s Entrepreneurs’ Awards began in 2006 to encourage young people and help local development.
Awards go to a student or group from participating campus that produces the best business plan for a small business.
Besides money, CCCU also mentors the recipients.