MADISON, Wis.–In some countries credit unions have not been designated as “essential” during the coronavirus pandemic, according to the World Council of Credit Unions (WOCCU), which is urging governments and regulators to recognize the “critical” role CUs play.
In some jurisdictions, WOCCU added, credit unions have not been determined to be “essential” even though banks have. Excluding CUs, WOCCU said, “prohibits them from providing these necessary and often life-saving services.”
“It is critical that we allow credit unions to be a part of the financial relief solutions for their members and for the citizens of their respective countries. The coronavirus pandemic has already and will continue to strain the broader economy,” said WOCCU VP-Advocacy Andrew Price in a statement. “Credit unions should not be arbitrarily shut down because they were omitted from a definition of ‘bank’ or ‘financial Institution.’”
The World Council said its member credit union associations in countries around the globe have expressed concerns about the disparity between banks and credit unions regarding this issue since the crisis began in March.
Cut the Red Tape
“Credit unions are supporting frontline workers like nurses and janitors who are providing those essential services to help us through the crisis. Government red tape should not get in the way of these efforts,” added Price.
WOCCU said it is urging flexibility among all regulators throughout the COVID-19 pandemic—citing the historical consistency of credit unions providing much needed stability, and essential services during market hardships and crisis situations.