Credit union proposal for rural communities 22/9/14
A feasibility study is under way for the setting-
Steven Cunningham, a partner in Alexander Sloan, who specialises in the sector, said: “A number of credit unions exist in several rural communities but there is, at present, no credit union specifically designed to accommodate the needs of the rural and farming community throughout Scotland.
“In other countries, such as Canada, farming credit unions are a major source of finance for the farming sector, and it would appear that there is no real reason why one should not exist here.
“With the numbers of rural bank branches in sharp decline there could well be an increasing need for a rural credit union in our rural areas.
Credit unions are a form of savings and loans mutual, owned and governed by their members to serve their needs. They only transact business with members, have restricted borrowing powers, and cannot speculate with members’ funds.
Like banks, they are regulated by the Financial Conduct Authority and the Prudential Regulation Authority, and deposits are covered under the terms of the Government’s Financial Services Compensation Scheme.
A survey seeking views on the credit union is available here: Scottish Rural Credit Union