Share

European Network of Credit Union Members Urge Proportionality in the EU

Virtual outreach effort addresses potential reforms that could place burden on credit unions

December 01, 2021

WASHINGTON, D.C.—Facing a slew of reforms that could impact the ability to serve their communities, members of the European Network of Credit Unions (ENCU) spent the past two weeks urging various European Union (EU) policymakers to apply proportional treatment to credit unions on several items coming up in the European Parliament’s legislative term.

ENCU conducted the virtual outreach effort with representatives from the offices of Members of the European Parliament (MEPs), Member States in the Council of the European Union, DG FISMA, DG JUST and other offices in the European Union.

Eight European credit union associations and World Council of Credit Unions (WOCCU) comprise ENCU, which serves as a platform to exchange information, ideas and strategies between countries—and speak as a unified voice on European policy and regulatory matters affecting credit unions.

ENCU is working to ensure the credit union model is recognized within the suggested reforms coming before Parliament. Some of the issues at play in this legislative term include:

  • the Digital Operational Resilience Act (DORA), which looks to impose new operational resilience and reporting requirements;
  • the Consumer Credit Directive, looking to overhaul lending disclosures;
  • Sustainable Finance to support the transition to a sustainable economy; and
  • the EU Banking Package, which is looking to strengthen oversight of EU banks.

“While many of these changes are well-received, such as the Consumer Credit Directive, which will bring disclosures in line with modern digitalization developments, and the European Commission’s consideration of expanding the taxonomy on Sustainable Finance to include social factors, we need to make sure the not-for-profit credit union cooperative model is contemplated in these reforms so we can continue to provide inclusive economic growth for EU citizens,” said Andrew Price, WOCCU/ENCU Senior Vice President of Advocacy and General Counsel.

Participating members in this outreach effort included representatives from the:

WOCCU International Advocacy representatives joined the effort to share their views on how European Union policies can be proportionately tailored to allow credit unions to thrive in Europe.



World Council of Credit Unions is the global trade association and development platform 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 300+ technical assistance programs in 90 countries. Worldwide, 86,451 credit unions in 118 countries serve 375 million people. Learn more about World Council's impact around the world at www.woccu.org.

Author Photo
Contact: Greg Neumann
Organization: World Council of Credit Unions
E-mail: gneumann@woccu.org
Phone: +1 608-395-2048
 
Andrew Price
Andrew Price

NOTE: Click on photos to view/download in high resolution.