Co-ops are “Essential” during COVID-19 Crisis

MADISON, Wis.—World Council of Credit Unions (WOCCU) is calling on national-level authorities and regulators to ensure that co-operatives are properly designated as “essential” during the COVID-19 crisis. Some jurisdictions do not currently include co-ops in the definition of essential, even though this classification has been extended to banks.

Co-ops should be allowed to play a critical role in supporting people impacted by the pandemic, allowing them to provide pro-consumer financial services to help consumers weather the crisis. Exclusion from the definition of essential 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. Co-ops should not be arbitrarily shut down because they were omitted from a definition of ’bank’ or ’financial Institution,’” said World Council Vice President of Advocacy Andrew Price.

WOCCU-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.

“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,” said Price.

Brian Branch, CEO of the WOCCU released a statement during the Covid-19 Crisis: “As governments move towards restrictions on operations, lockdowns, telling businesses to close . . . it is important for co-ops to tell your governments that you should be identified as essential businesses because governments will usually issue regulations that says non-essential businesses should shut down and stop providing services.  But people need access to their savings, they need access to cash, and so in many countries, coops have been pro-active in telling their governments that people do not have access to financial services from their banks.  This is the time they come to co-ops looking for help to get through this crisis.  It is important for Governments to find that co-ops are one of those essential businesses.”

WOCCU is the global trade association and development platform for credit unions. WOCCU promotes the sustainable development of credit unions and other financial cooperatives around the world to empower people through access to high quality and affordable financial services. World Council advocates on behalf of the global credit union system before international organizations and works with national governments to improve legislation and regulation. Its technical assistance programs introduce new tools and technologies to strengthen credit unions’ financial performance and increase their outreach.

WOCCU has implemented 300+ technical assistance programs in 89 countries. Worldwide, 85,400 credit unions in 118 countries serve 274 million people. 

www.woccu.org.