Co-operative and mutual banks and not-for-profit savings banks have played an important role in the European financial system over the last century. Indeed, there remain several European co-operative banks that have a very strong presence in their domestic markets.

The Association of British Credit Unions has welcomed the Government’s announcement that it is investing up to £73 million in credit unions and that the Post Office could play a central role in delivering credit union services.

A report from the Consumer Focus organisation on the pay day lending market has recommended the extension of support for credit unions and an expansion of their services through Post Offices to address problems caused by high-cost, instant borrowing.