HISTORIC PRESS RELEASE : Taskforce to look at how Banks can help Credit Unions [July 1998]

The press release issued by HM Treasury on 28 July 1998.

Helping more people on low incomes gain access to financial services is the main aim of a Taskforce established today by the Economic Secretary, Helen Liddell.

The Taskforce, chaired by Fred Goodwin, Deputy Group Chief Executive of the Royal Bank of Scotland, will look at ways banks can help credit unions. Its remit will be to:

• explore ways in which banks and building societies can work more closely with credit unions to increase their effectiveness;
• look at ways to widen the range of services that are provided to credit union customers; and
• encourage the continued expansion of the movement.

Its role will be to identify best practice in these areas and how this can be promoted more widely as well as proposing new areas for co-operation.

Helen Liddell said:

“Credit unions have an important role as a place for savings and source of low cost credit for the less well-off. They can also provide a first rung on the ladder of financial services for young people.

“We want to build on that. If banks and credit unions work together we could see more people having access to bank accounts and credit who do not presently do so.”

The Taskforce membership will be made up of senior representatives from banks, building societies and the credit union movement. The Treasury will provide the secretariat.

The first meeting will be held around September. The Taskforce will be asked to produce a first report by the turn of the year and a final report by the middle of next year.