The good, the bad and the ugly: A discussion of the impact of regulatory reform on the UK credit union sector

Credit unions are self-help cooperative financial organisations which provide simple financial services and are geared to attaining the economic and social goals of their members and their wider local communities. A key distinctive element of the philosophy underlying credit unions is that they are “all about empowering members to take responsibility for their financial needs”, surely a very important theme for all. The recent financial and banking crisis, together with legislative changes, offers both opportunities and threats to the credit union movement.

This study investigates, by undertaking financial analysis of the sector and interviews with sector stakeholders, the extent to which regulatory and legislative amendments have impacted on the performance and stability of credit unions in two different jurisdictions – Great Britain and Northern Ireland. The report also considers the potential impact of forthcoming legislative changes in both jurisdictions.