Could CUs Serve The Underserved WithoutCDCUs?

ROME - (07/26/05) -- One theme always apparent during anyWorld Council of CUs event is a view by some in developingcountries that U.S. credit unions have grown so large they nolonger fulfill their "social mission." That led one person fromoutside the U.S. to question CUNA CEO Dan Mica whether the need toform community development credit unions (CDCUs) to servelow-income markets is an indication developed credit unions are nolonger serving those areas. "Clearly the larger a credit union getsthe more effort they have to put into reaching the underserved,"responded Mica. "But I would say that credit unions large and smalldo a better job reaching out to the underserved. We're trying tohelp them keep their eyes on the ball and are developing programsand templates for them to use. I think we're 70% to 80% there andwe can do a better job. But there is also no bank in the world thatonly lends to people who cannot afford it. If you do lend only tothose who can't afford it, the regulators will shut youdown."