Madam, - We wish to express our concern at the call made by the Credit Union Development Association for bigger bank-like credit unions and the merger of small parish-based credit unions with larger ones.
In our view this strategy will continue the process, already under way, of commercialising the credit union movement and so bringing it closer to the high street commercial banks than to its own community development ethos, offering suitable and affordable financial products and education to those in the community who have limited or no access to main-line credit products.
It is clear that the association would wish the credit union movement to traverse the same path as the movement has done in the USA.
There the amalgamation of credit unions has been under way for some years now, causing the need for the development of a new community development credit union movement dedicated to looking after the people that credit unions were set up to look after in the first instance.
The Money Advice and Budgeting Service (MABS) would encourage the credit union movement in Ireland and the regulatory body to which it operates to consider that one size does not fit all.
While it may be necessary for some large credit unions to lose their ethos and join the main-stream commercial financial providers, some thought and protection should be given to the small credit unions so that they can continue to provide saving, credit products and education to those in our society who are financially excluded. - Yours etc,
MICHAEL CULLOTY, Social Policy and Communications Officer, Money Advice and Budgeting Service, Raheny, Dublin 5.