Credit Union Study Team Kicks Off Initiative in China

(News release from the California Credit Union League, June 27, 2007)

U.S. and Canadian credit union leaders—including California and Nevada Credit Union Leagues President and CEO Bill Cheney and San Bernardino-based Arrowhead Credit Union President and CEO Larry Sharp —joined the World Council of Credit Unions (WOCCU) as it launched its new development initiative with the People’s Bank of China (PBC), June 11-20.

Led by Brian Branch, WOCCU’s executive vice president, and Barry Jolette, second vice chairman and CEO of San Mateo Credit Union in Redwood City, CA, the delegation met with top Chinese officials and visited rural credit cooperatives (RCCs) in China’s poorest province.

“It was an incredible experience,” said Cheney. “It made me that much more appreciative of the credit union movement, and the opportunities credit unions can provide to help people worldwide fulfill their financial dreams.”

“I feel fortunate to visit China once again and to learn of the status of the RCCs,” said Sharp, who attended an International Management Perspective Seminar in Beijing and Shanghai, China in 2002. “There are many challenges involved in bringing true credit union service to the people of China, but it is worth it to help make a difference in the lives of people of that country.”

Although China’s financial sector has been liberalized in recent years, most of the 1.3 billion people there still lack access to basic financial services, particularly in rural areas. Located in some of the poorest regions, the more than 30,000 RCCs throughout China have great potential to provide affordable financial services to the underserved majority.

“The credit union model is a robust vehicle for expanding financial services to rural producers, small business owners, and consumers in China’s rapidly growing economy,” Branch explained. “WOCCU has received a number of requests for information and assistance to share that model in China.”

The group visited historic sites such as the Forbidden City; conducted a seminar for PBC officials; and met with officials from the China Banking Regulatory Commission in Beijing to explain credit union financial management standards, governance principles, and business system models. The team then traveled to China’s poorest province, Guizhou, visited RCCs, and conducted a seminar on the credit union model for officials. During the visit, WOCCU and PBC officials established the framework for a memorandum of understanding to jointly develop credit union operational guidelines and a sector policy framework for credit unions in China.

Other members of the delegation included: Lee Butke, president and CEO of Corporate One Federal Credit Union in Columbus, OH; Sarah Canepa Bang, CEO of Financial Service Centers Cooperative in San Dimas, CA; K. Dwayne Naylor, executive vice president of Langley Federal Credit Union in Hampton, VA; Penny Reeves, WOCCU director and chairman of Credit Union Central of Alberta, Canada; Gary Plank, WOCCU chairman;  and Patsy Van Ouwerkerk, president and CEO of Travis Credit Union in Vacaville, CA. Ralph Swoboda, WOCCU’s advisor on China, supported the trip.

WOCCU is now completing an assessment of the RCCs in Guizhou province and developing an operational model and policy framework for credit unions there.

The World Council of Credit Unions, Inc. is the apex trade association and development organization of the international credit union system. It promotes the sustainable growth of credit unions and financial cooperatives across the globe. As instruments of economic and social development, World Council, its regional confederations, and national member organizations in 92 countries with 42,616 member credit unions serve more than 157 million people worldwide.

With headquarters in Rancho Cucamonga, CA, the California and Nevada Credit Union Leagues provide information, education, advocacy and support services to 421 credit unions in California and Nevada.  More than nine million Californians and Nevadans are credit union members.  There are more than 8,700 credit unions in the United States, with more than 87 million members.