Credit unions stress they are 'untarnished' by bank crisis

A delegation from the Irish League of Credit Unions (ILCU) met with Minister for Finance Brian Lenihan last Thursday to discuss the proposed redevelopment of the regulatory regime for the Irish financial services sector. There are 2.9 million credit union members on the island of Ireland and the ILCU is currently in discussions with the Minister for Finance to ensure that credit unions remain untarnished by any proposed changes which are aimed at the banking sector. With the Department of Finance currently considering proposals to address the regulatory failures that have afflicted the banking sector, the ILCU has highlighted the fact that the current financial crisis has clearly underlined the strength of the credit union model. Speaking after the meeting, Mark Bailey, president of the Irish League of Credit Unions, said: "At a time of crisis within the Irish banking system, where banks have to write off billions of euro in bad debts while at the same time being supported financially by the Irish taxpayer, credit unions remain robust and well-capitalised. Credit unions are taking a prudent approach to their finances in the long term interest of their members." Mr Bailey added: "Our members are seeking additional services from their local credit unions. What we need is regulation and legislation which facilitates the development of the movement, not one which is restrictive and stifling of new development initiatives." The theme of this year's International Credit Union Day is 'Your Money. Your Choice. Your Credit Union'. The theme underlines the credit union co-operative spirit, emphasising value, trust and service to members. Credit unions are not-for-profit financial co-operatives that provide an effective and viable alternative to for-profit financial institutions for more than 186 million members in 97 countries worldwide. Credit Unions exist to serve their members, providing a safe place to save money and access affordable loans, according to the ILCU. Mark Bailey said International Credit Union Day, held last Thursday, is a chance to reflect on what credit unions represent in local communities. "Credit unions are at the coalface in dealing with members who, through no fault of their own, have suffered pay cuts, job losses and redundancies. Now, more than ever, it is time for the co-operative spirit to come to the fore to help people who find themselves in financial difficulty. In these uncertain times, more and more people are turning to credit unions as they become disillusioned with other financial providers. Credit unions will always be about people. They exist to serve members, not to profit from their needs," said Mr Bailey.