World Council discusses reg. burden with Euro CU group
April 17, 2015
BRUSSELS (4/20/15)--The World Council of Credit Unions discussed regulatory burdens and financial inclusion on the world stage last week with the European Parliament Credit Union Interest Group. The group is a caucus for Members of the European Parliament (MEPs) who support credit unions.
At the meeting, MEPs and credit union leaders discussed how credit unions play an important role in promoting the financial inclusion of Europeans of modest means. At the same time, they are faced with expanding compliance burdens that take resources away from serving their members.
European credit unions are much smaller than European banks and generally engage in less risky financial activities. However, they are subject to many European Union (EU) directives and regulations designed primarily to address problems in the banking sector.
European Parliament Vice President Ryszard Czarnecki urged credit unions to continue this dialogue in order to prevent overregulation of credit unions at the European level and to help make it easier for credit unions to provide their members with loans, savings and other financial services at reasonable rates.
Credit union representatives shared specific examples with MEPs regarding their financial inclusion efforts and regulatory burden challenges in Estonia, Great Britain, Ireland, the Republic of Macedonia, Poland and Romania.
MEPs at the meeting said that they shared credit unions' concerns about the unintended consequences of regulation and excessive compliance burdens.