Ferguson

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					ISSUES OF SUSTAINABLE DEVELOPMENT IN A TRANSITIONAL
CREDIT UNION SYSTEM
Charles Ferguson



Since the late eighties both central and local government in Great Britain have
invested heavily in the credit union ideal. However with few exceptions, this has not
resulted in the creation of self-sustaining financial institutions able to make a
significant impact on social and financial exclusion. For the most part, the British
credit union movement is still made up of small, institutionally weak credit unions
lacking the capacity to serve large numbers of members. Recent changes in the
regulatory environment introduced by the Financial Services Authority aims to
increase consumer confidence in credit unions and create an environment in which
credit unions can potentially enjoy a period of sustained growth. However, many
smaller credit unions, especially those heavily reliant on part-time volunteers with
limited expertise, are finding it difficult to comply with the new regulations. This, in
turn, has resulted in a strong pressure for increased merger activity between smaller
credit unions It is apparent that some forced mergers are already taking place
amongst smaller credit unions established in inner-city areas which are largely
dependent on external assistance and financial support. Under the new regulatory
regime, credit unions that are likely to prosper are those based upon a more inclusive
common bond. Both merger activity and the management of partnerships to create
more inclusive common bonds will therefore impact heavily on future sustainable
development in this transitional credit union system.

The purpose of this paper is to examine the current dynamics of both increased
merger activity and credit union growth through more inclusive common bonds as
these affect future sustainable development. Attention will be paid in particular to an
examination of a proposed empirically based methodology employed to better analyse
these issues
CHARLES FERGUSON
Associate Professor
Universiti Brunei Darussalam
Department of Management Studies
Jalan Tungka Link
Gadong BE1410
Brunei Darussalam

				
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posted:8/9/2011
language:English
pages:2