World Council of Credit Unions (Woccu) president and CEO Elissa McCarter LaBorde met with National Bank of Ukraine officials to discuss ways to strengthen the country’s credit unions.
McCarter LaBorde called for a more enabling regulatory environment for credit unions, in a meeting in Kyiv on 5 September, with Serhii Savchuk, director of the NBU’s Department of Methodology for Nonbank Financial Institutions, and Mykhailo Fedorenko, director of the NBU’s Nonbank Financial Services Supervision Department.
The NBU officials highlighted the potential for credit unions to lend more to veteran-owned businesses. They also pointed out some of the sector’s challenges, such as insufficient levels of automation, operational efficiencies, management systems, competitiveness and technological development.
Related: Woccu launches scheme to boost credit union business lending in Ukraine
NBU plans to address some of these issues by providing apex Ukraine’s United Credit Unions (UCUs) with the ability to offer uniform products and IT solutions that would allow credit unions to cut operating costs and focus on providing quality financial services. The regulator is also considering extending the provision of payment services by credit unions, including the ability to issue payment cards to members and providing a technological update to credit unions, so they can provide modern services, build effective internal control systems and ensure transparency in their activities.
“Certainly, the inclusion of such institutions in the deposit guarantee system will contribute to the strengthening of the credit union market,” Savchuk told Woccu. “However, the implementation of this initiative is only possible after the completion of military operations and other preconditions, including the successful completion of the market transformation.”
Woccu is also campaigning for the establishment of deposit guarantees for credit unions in Ukraine by providing technical assistance to amend the country’s law on deposit guarantee fund, making it possible for credit unions to join the system.
While in Ukraine, McCarter LaBorde also met with Olga Bilay, acting managing director of Ukraine’s Deposit Guarantee Fund (DGF), to explore ways to ensure credit union member deposits are eventually protected.
“This is an incredibly important time to show up and advocate for Ukraine’s credit unions,” said McCarter LaBorde. “As they try to maintain the same level of services and operations during wartime, World Council of Credit Unions is committed to strengthening the environment in which they operate, while expanding their ability to provide loans to more women, veterans and other members who own and operate small businesses.”
While in Ukraine, McCarter LaBorde attended the launch of the new USAID/Woccu Grow Project and met with representatives from the All-Ukrainian Credit Union Association (Aucua)and the Ukrainian National Association of Savings and Credit Unions (Unascu), Woccu’s direct member organisations in the country,
The USAID/Woccu Grow Project is a new four-year activity designed to expand lending to micro, small and medium enterprises (MSMEs) by creating a conducive environment for credit unions to operate, access more liquidity and improve their operational capacity.
