MADISON, Wis.-When members of the Group of 20 (G-20) nations met at The London Summit in April, they did so with information provided by the World Council of Credit Unions on the role credit unions play in their countries.
The G-20 had earlier established four working groups, one of which focuses on supervision, enhancing sound regulation and increasing and strengthening transparency. WOCCU sent a formal letter addressed to committee co-chairs Rakesh Mohan, deputy governor of the Reserve Bank of India, and Tiff Macklem, associate deputy minister of the Canadian Ministry of Finance, outlining the role of credit unions and their supervisory structures.
"We also have been in communication with the World Bank representative who sits on the committee," said WOCCU's David Grace. "He assured us that credit unions are not within the scope of the regulatory review."
In its letter, WOCCU requested that three distinct steps be taken during the fall summit:
* That any future financial rescue packages implemented at global or national levels be unbiased against cooperative financial institutions relative to the commercial banking sector.
* That in any pronouncements emanating from the summit, cooperative financial institutions be recognized as secure, locally owned financial institutions that have presented safe and sound financial alternatives during the current crisis.
* That future regulations or legislation that may result from this crisis clearly recognize that cooperative financial institutions have not been the source of these problems, have been significantly less affected by the economic fallout and should not be punished by inclusion in a series of new rules designed to correct a problem they have not caused.
