BRUSSELS—Representatives of the World Council of Credit Unions and the European Network of Credit Unions (ENCU) met with key representatives of the European Union (EU) and select members of the EU Parliament (MEPs) to discuss the EU Payment Package and other regulatory items pending this legislative term.
Eight European credit union associations and the World Council (WOCCU) comprise ENCU, which serves as a platform to exchange information between countries—and “speaks with one voice on European matters,” WOCCU said.
According to WOCCU, 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
Potential Impact
WOCCU said 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 reported they have been 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.”
The two organizations said they will continue to be engaged through the rest of the year as these policy issues run their course.
‘Big Ticket Items’
“As we head toward the EU elections, there remain many big ticket items left on the agenda,” said Andrew Price, SVP-international advocacy and general counsel for WOCCU. “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.”
WOCCU said those with whom it visited included 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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