Basel II Addressed at CUCC Conference
Toronto, Canada—World Council of Credit
(WOCCU) senior manager of trade association
services, Dave Grace, addressed Canadian credit
union leaders as part of a Credit Union Central
of Canada (CUCC) conference break out session on
upcoming Bank for International Settlements
standards. The session explained what is new in
the revision to the Basel Accord on capital
Grace explained, "There is a growing interest—
of necessity." Grace spoke on WOCCU's actions
with Basel Committee and the competitive impact
of Basel II on credit unions.
"One thing that's interesting is 55% of the
portfolio for Canadian credit unions is made up of
home loans. If you look at where the big banks
will benefit the most from Basel II, it will be
reductions of capital for home loans.
Banks will be able to hold much less capital
credit unions, simply because we don't have all
of the data."
The panel also included Phillip Moore,
manager, Greater Vancouver Community Credit
history of Basel in British Colombia and the
potential impact in his credit union. Moore
doesn't see a large reduction in capital for his
credit union—rather a
relocation of capital.
Leon Bloom, partner, Deloitte & Touche LLP
the third panel speakers
on the impact of Basel for banks. Leon noted
that Basel deals specifically with the
losses and regulated capital needed for those,
but sees the economic capital to be a bigger
driving force in banks pricing.
Arthur Arnold, WOCCU president and CEO
noted, "The new Basel II Accord will have an
impact on credit unions all over the world,
including Canada. We need to prepare for those
changes and what it means for credit unions."
To learn more World Council's position on
visit the World Council website at
World Council of Credit Unions is the global trade association and development agency for credit unions. World Council promotes the sustainable development of credit unions and other financial cooperatives around the world to empower people through access to high quality and affordable financial services. World Council advocates on behalf of the global credit union system before international organizations and works with national governments to improve legislation and regulation. Its technical assistance programs introduce new tools and technologies to strengthen credit unions' financial performance and increase their outreach.
World Council has implemented more than 290 technical assistance programs in 71 countries. Worldwide, 57,000 credit unions in 105 countries serve 217 million people. Learn more about World Council's impact around the world at www.woccu.org.
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