BCU Establishes Official
Partnership In Ecuador
AMBATO, Ecuador-Last week, two representatives from BCU of Vernon Hills, Ill. (USA), traveled to Ambato, Ecuador, to establish an official credit union-to-credit union partnership with Cooperativa de Ahorro y Credito OSCUS Ltda. Through World Council of Credit Unions' International Partnerships Program. The new partnership between BCU and OSCUS will allow both parties to directly exchange information, ideas and best practices in credit union operations.
"We are thrilled to embark on this journey with OSCUS and look forward to all we have to learn from each other," said Mike Valentine, BCU president and CEO. "Forming a partnership with an organization full of dedicated individuals with shared goals and values only strengthens our pride in the World Council International Partnerships' mission and the industry as a whole."
During the visit, Bob Pondelicek, BCU director of mortgage sales, and José Cajigas, BCU regional director, visited three of OSCUS's rural branch offices to observe how the credit union helps underserved communities. The U.S. representatives also attended OSCUS's 50th anniversary celebration along with 800 credit union members and international delegates. During the celebration, the local government presented OSCUS with special awards for its community service activities, and BCU presented a special commemoration congratulating OSCUS on its 50 years of success.
Breaking Boundaries
"This partnership breaks boundaries and marks a milestone in the Ecuadorian cooperative movement," said Federico Cuesta, OSCUS CEO. "Cooperative thought and willpower have built a new path of management and international integration."
The new partnership brings the total number of International Partnerships Program alliances to 20 across North America, Latin America, the Caribbean, South Pacific and Europe.
"Connecting OSCUS and BCU allows them to leverage their shared commitment to provide the best member experience regardless of whether it's in the suburban communities of Chicago or in rural Ecuador," said Victor Miguel Corro, Worldwide Foundation for Credit Unions vice president, who oversees World Council's International Partnerships Program. "We will work hard to support this partnership and to continue connecting credit unions around the globe."
WOCCU Holds Talks With
State Officials In Malawi
LILONGWE, Malawi-Representatives of World Council of Credit Unions and Malawi Union of Savings & Credit Co-operatives met with state officials in Lilongwe, Malawi to discuss the challenges and opportunities to expand credit union services to rural areas in an effort to achieve broad-based financial inclusion.
WOCCU CEO Brian Branch traveled to Malawi to join World Council Director Sylvester Kadzola, chief executive of Malawi Union of Savings & Credit Co-operatives (MUSCCO), in a meeting with Malawi Vice President Khumbo Hastings Kachali and Reserve Bank of Malawi Governor Charles Chuka.
During the meeting, Kachali asked for the expansion of SACCO services to rural areas, and Chuka encouraged MUSCCO to work on strengthening leadership and good governance practices among SACCOs.
The Reserve Bank of Malawi, which acts as the SACCO regulator and supervisor, issued new regulations in April 2012. Supervision for SACCOs with assets less than $280,000 was delegated to MUSCCO in liaison with the Reserve Bank. MUSCCO has since instituted regular reporting and examination systems to monitor credit union performance.
Today there are 46 SACCOs serving 123,540 members with total assets of approximately $21 million.
UN MicroLead Program
Grants $2.4M To WOCCU
MADISON, Wis.-The United Nations Capital Development Fund, through its MicroLead program, has awarded World Council of Credit Unions a $2.45 million, four-year grant to rapidly expand savings and improve the livelihoods of poor and low-income households through credit unions in Liberia.
WOCCU said it will work with its new member organization, the Liberia Credit Union National Association (LCUNA), to revitalize the credit union system in the West African country.
The World Council's program will establish new credit union savings products, build credit union capacity and strengthen LCUNA's ability to establish and maintain a network of safe and sound credit unions in Liberia. World Council will also work with LCUNA to establish four regional credit unions to serve as models for the national credit union system. There are currently 300 credit unions affiliated with LCUNA, serving 36,000 total members.
ENCU And WOCCU Reps
Meet EU Policymakers
BRUSSELS-Representatives from the European Network of Credit Unions (ENCU) and World Council of Credit Unions met with European Union (EU) policymakers to advocate for a number of issues affecting European credit unions.
Among the issues discussed were reasonable interpretation of Basel Committee liquidity rules, the U.S. Foreign Account Tax Compliance Act (FATCA) and related European rules, and the provision of basic current accounts to the unbanked in order to promote financial inclusion.
ENCU representatives included Matt Bland, Association of British Credit Unions, Ltd. (ABCUL) policy and communications officer; Paweà â Grzesik, National Association of Co-operative Savings and Credit Unions (NACSCU) Warsaw representative (Poland); Brian McCrory, Irish League of Credit Unions (ILCU) director; Ed Farrell, ILCU head of finance; and Breege-Anne Murphy, ILCU legal and secretariat department supervisor.
Regarding the EU's interpretation of Basel liquidity rules, the ENCU group met with the European Commission to urge that credit unions be treated similarly to other depository institutions in terms of how credit union deposits at banks are treated under the Basel "Liquidity Coverage Ratio."
Cutting Yields To CUs
For instance, although credit unions are not subject to the Liquidity Coverage Ratio, commercial banks in Ireland have told Irish credit unions that they are being classified as "non-bank financial institutions"-a category that applies to non-depository institutions-for purposes of draft European liquidity guidance. Banks are therefore cutting the yields they will pay on credit union demand and term deposits.
ENCU members also met with European Commission representatives regarding the impact of FATCA on EU credit unions as it relates to European data protection regulations as well as the likely upcoming tax information-sharing amendments to EU directives in order to create what some have called a "European FATCA."
ENCU members also urged European Commission members to consider credit union-friendly rules on basic current accounts for the unbanked.
Calif. & Nevada Leagues
Hold Strategy Workshop
GUATEMALA CITY, Guatemala-California and Nevada Credit Union Leagues President and CEO Diana Dykstra conducted a workshop on governance and strategy with the board of directors of Federación Nacional de Cooperativas de Ahorro y Crédito (FENACOAC), Guatemala's national credit union trade association.
During the visit to the Central American country, Dykstra-along with FENACOAC CEO Oswaldo Oliva and World Council of Credit Unions Vice President of the Worldwide Foundation for Credit Unions Victor Miguel Corro-also visited with the Superintendency of Banks to advocate for credit union-specific regulation.
The leagues have partnered with FENACOAC since 2009 as part of World Council of Credit Unions' International Partnerships Program, which seeks to connect developed and emerging credit union movements to form collaborative and mutually beneficial partnerships.
Dykstra's visit included a meeting with FENACOAC's full board and senior staff to discuss planning, strategy and how to forge a vision of the future in an organization. She emphasized the difference between board vs. staff responsibilities.
Dykstra and Corro visit with the Superintendency of Banks included discussion of regulation in the U.S. The Superintendency's technical staff is working on a draft that will ultimately result in a credit union law in Guatemala.
Unified Brand Across Country
Guatemala's MICOOPE system, implemented in 2008, comprises 25 credit unions that adopted a unified brand to help with public awareness, ease of transactions throughout the country and credit union membership growth. MICOOPE is essentially self-regulated, with FENACOAC acting as the monitoring agent. Currently MICOOPE has 1.2 million members.
Among the next steps for the partnership between the Leagues and FENACOAC is a visit from members of the technical staff of the Superintendency of Banks as well as MICOOPE with the California Department of Financial Institutions later this year.
