The European Network of Credit Unions (ENCU) and World Council of Credit Unions (WOCCU) joined the Croatian Credit Union Association 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.
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