WOCCU Issues Model Regulations for Credit Unions
February 13, 2008
MADISON, Wis.—The credit union principle of financial cooperatives that are member-owned may be consistent worldwide, but formal regulation for credit unions can vary greatly from country to country. World Council of Credit Unions’ (WOCCU’s) new Model Regulations for Credit Unions will provide policy makers, regulators and credit union leaders with guidelines for implementing quality regulatory standards that have application for a broad spectrum of developed and developing credit union movements.
Designed as a companion piece to WOCCU’s Model Law for Credit Unions, published in 2005, Model Regulations is based on examples of regulations assembled from numerous countries, as well as WOCCU’s extensive international development experience and documented best practices. WOCCU research provided a policy framework for the 62-page guide, while other microfinance institutions contributed principles, according to Dave Grace, WOCCU’s vice president of Association Services.
“Credit unions in many countries do not have sufficient supervision,” said Grace. “WOCCU is providing policymakers the next step of guidance—model regulations to implement the laws they’ve created.”
With content guided by WOCCU’s Legislative and Regulatory Committee, Model Regulations is believed by its developers to be the first document of its kind to be written and distributed for credit union-specific regulations. The guide includes a regulation matrix on CD-ROM that contains real-world examples of regulations from 18 distinct credit union sectors, including both developed and developing movements. The matrix will aid users in developing and implementing the regulations.
Model Regulations will be distributed to participants of the Global Regulators’ Roundtable scheduled to take place as part of the 2008 World Credit Union Conference July 13-16, 2008 in Hong Kong. The guide also will be given to attendees of the African and Latin American Regional Regulator Roundtable meetings.
Over the past 15 years, Model Law for Credit Unions has been used extensively in dozens of countries and translated into multiple languages. Model Regulations is expected to become as widely used, especially as credit unions around the world continue to grow.
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, 60,500 credit unions in 109 countries serve 223 million people. Learn more about World Council's impact around the world at www.woccu.org.