European Network of Credit Unions (ENCU) Advocates for Proportional Regulatory Treatment in Brussels
27 November 2024
MADISON, Wis.—Fourteen representatives of the European Network of Credit Unions (ENCU) last week converged on Brussels, Belgium to share the credit union mission with newly elected officials and advocate for regulatory relief from the European Commission’s Regulation on Financial Data Access (FiDA)— a new framework for access to customer data, and how that data is shared and used across a wide range of financial services.
ENCU representatives met with several new members of the European Parliament (MEPs) and officials with the European Commission departments responsible for EU policy related to financial service issues.
Specifically, ENCU representatives advocated for a credit union exemption from FiDA.
“With the European Parliament’s draft report still subject to discussion, we wanted to make sure our ENCU representatives were able to meet with as many key players as possible to convey the message that an exemption is important for credit unions, and discuss the impacts of other key regulations on credit unions,” said Erin O’Hern, WOCCU International Advocacy and Regulatory Counsel, who led the ENCU delegation.
ENCU representatives also met with Anne Marie McKiernan, Director of Operations at the Central Bank of Ireland, and Boris Kisselevsky, Head of the European Central Bank Representation in Brussels, for important conversations on the digital euro.
The ENCU delegation also attended the European Payment Institutions Federation’s (EPIF) 9th annual conference, which featured discussions on the EU’s Payment Services legislation, the digital euro and open finance, and the new EU Anti-Money Laundering Authority.
ENCU members involved in last week’s meetings included representatives of the Irish League of Credit Unions (ILCU), National Association of Co-operative Savings and Credit Unions (NACSCU) of Poland, Federation of Romanian Credit Unions (FEDCAR), Estonian Union of Credit Cooperatives (EUCC), North Macedonia's FULM Savings House and the Croatian Association of Credit Unions.
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European Network of Credit Unions (ENCU) in Croatia to Urge Support for Financial Inclusion Measures
27 September 2023
ZAGREB, Croatia—The European Network of Credit Unions (ENCU) and World Council of Credit Unions (WOCCU) joined the Croatian Credit Union Association this week to convince key policymakers in Croatia’s capital to address the regulatory challenges preventing credit unions from maximizing their ability to reach underserved communities.
ENCU, comprised of eight European credit union associations and WOCCU, serves as a platform to exchange information between countries and speaks with one voice on European matters.
The group is urging several policy changes in Croatia, including a revision to arcane restrictions on advertising, providing needed deposit insurance in accordance with European Union (EU) standards and the ability to provide services to small businesses in a similar manner as other credit unions around the world.
Because of their cooperative nature, credit unions can often provide these services in areas where large banks sometimes choose not to compete—and often at prices lower than those of larger banks. Modest policy changes that will not affect the safety and soundness of these institutions could dramatically increase financial inclusion in Croatia.
“Allowing credit unions to serve small businesses would provide much needed financing to SMEs that will encourage an entrepreneurial culture and promote growth in Croatia. Many of these businesses are underserved by the banking communities and credit unions can fill a much-needed role,” said Andrew Price, Senior Vice President of Advocacy and General Counsel, European Network of Credit Unions.
“There is no good policy reason to prevent credit unions from advertising their services like any other business in Croatia. In fact, it is a barrier to providing responsible and affordable financial services to Croatians, particularly where many of them have no access,” said Zeljka Pirija-Benakovic, President of the Croatian Association of Credit Unions, which hosted the ENCU representatives.
The schedule this week included meetings with the Croatian Ministry of Finance, Croatian Parliament, Croatian National Bank and several other key policymakers. Members of ENCU shared their respective experiences from around the European Union.
ENCU was represented in Croatia this week by the Irish League of Credit Unions (ILCU), National Association of Co-operative Savings and Credit Unions (NACSCU) of Poland, Croatian Association of Credit Unions (CACU), Federation of Romanian Credit Unions (FEDCAR), Estonian Union of Credit Cooperatives (EUCC), North Macedonia's FULM Savings House and the Dutch Association of Cooperating Credit Unions (VSK). Representatives were also on hand from credit unions in Albania and the USAID Credit for Agriculture Producers (CAP) Project in Ukraine, a program administered by WOCCU since 2016.
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WOCCU and ENCU Advocate for Support of Credit Unions in Brussels
08 June 2023
BRUSSELS—The European Network of Credit Unions (ENCU) together with World Council of Credit Unions met this week with key representatives of the European Union (EU) and select Members of the EU Parliament (MEPs) on the EU Payment Package and other regulatory items pending this legislative term.
Eight European credit union associations and World Council of Credit Unions (WOCCU) comprise ENCU, which serves as a platform to exchange information between countries—and speaks with one voice on European matters.
This year, major policy changes that may dramatically affect credit union operations are in play, including the EU Payment Package, which contains:
- provisions mandating instant payments.
- the adoption of a digital Euro.
- open finance considerations.
- reforms to the EU Payments Services Directive (PSD2), which governs the underlying payments framework.
Sweeping changes to the supervisory role on AML/CFT framework and further work on sustainable finance issues are also in play.
The potential impact from the various items under consideration could require credit unions to spend precious resources to comply with the requirements to provide instant payments, rework systems to allow for open banking and open finance and create new reporting and regulatory burdens for credit unions.
WOCCU and ENCU are delivering key messages this year to ensure the adequate proportionality necessary to support the credit union not-for-profit cooperative model, while maintaining a level playing field with other financial service providers. WOCCU and ENCU will continue to be engaged through the rest of the year as these policy issues run their course.
“As we head toward the EU elections, there remain many 'big ticket' items left on the agenda. It is critical that credit unions are properly considered so that they can continue their crucial role of serving their communities. Our members’ presence here this week is effectively making the case that credit unions play a vital role in providing responsible and affordable financial services in the EU,” said Andrew Price, Senior Vice President of International Advocacy and General Counsel for World Council of Credit Unions.
Meetings this week included a visit with Ambassador Thomas Hanney, Permanent Representation of Ireland to the EU, Billy Kelleher, MEP (Renew, Ireland), Alfred Sant MEP (Socialists and Democrats, Malta), along with other key policy makers from the Commission and the Council.
Members of ENCU include the Irish League of Credit Unions (ILCU), National Association of Co-operative Savings and Credit Unions (NACSCU) of Poland, Croatian Association of Credit Unions (CACU), Federation of Romanian Credit Unions (FEDCAR), Estonian Union of Credit Cooperatives (EUCC), North Macedonia's FULM Savings House and the Dutch Association of Cooperating Credit Unions (VSK).
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