LONDON—This U.K.’s financial regulator has formally approved the Church of England to form a credit union.
In response, the Church said on its website that "Fair returns to savers, fair interest rates on loans and the aspiration to be a flagship credit union are among the aims of the Churches' Mutual Credit Union (CMCU).”
The credit union will serve ordained ministers, licensed lay ministers, elders, employees and trustees of the Church of England, the Methodist Church of Great Britain, the Church of Scotland, the Scottish Episcopal Church and the Church in Wales, in addition to charities supported by those churches.
Those behind the credit union have said they eventually plan to expand membership to include all those who also worship in those churches, although that would also require regulators’ approval.
"CMCU will help many, even in its first year of operation and, in due course, it should become a significant financial resource to the church and individuals throughout England, Wales and Scotland. CMCU will enable a virtuous re-cycling of money within the church community, through a combined portfolio of savings and loan products," said Canon Anthony MacRow-Wood, president of Churches’ Mutual Credit Union.
Initial plans are to offer savings and loan services, including vehicle loans, effective in February 2015.