War in Ukraine a Serious Setback for Credit Unions

During the Sunday’s opening ceremony of WOCCU’s 2022 World Credit Union Conference, Ukraine’s Deputy Governor of the National Bank of Ukraine (NBU) gave audience members a bleak view of what Russia’s invasion has done to the country and the nation’s credit union system.

“Today, 20 credit unions are located in the territories temporarily occupied [by Russia] since Feb. 24, while 17 credit unions are in combat zones, and another 34 credit unions actually do not perform any activities because most of their staff have evacuated,” Deputy Governor of NBU Sergiy Nikolaychuk said.

Nikolaychuk spoke to conference attendees virtually on a giant screen at the convention center in Glasgow, Scotland.

According to a statement from WOCCU, Nikolaychuk said the Russian military invasion came at a time when Ukraine’s parliament was set to pass a new credit union law that would have modernized and strengthened the country’s credit union system.

The draft law would institute the following measures:

• Expand the list of financial services credit unions can provide to members.
• Improve licensing and corporate governance requirements for credit unions.
• Allow for increased levels of capitalization and stress resilience of credit unions to strengthen the reliability of credit unions and consumer confidence in it.
• Allow for remote annual general meetings instead of in-person gatherings.

For now that law, plus the Deposit Guarantee Fund for credit union members, is stalled in parliament due to the ongoing military action by Russia.

According to WOCCU, Nikolaychuk pled for conference attendees to donate to the Worldwide Foundation for Credit Unions’ (WFCU) Ukrainian Credit Union Displacement Fund, originally established Feb. 27.

“To date, over $1.7 million dollars has been raised from over 1,600 donors, comprised of individuals, institutions, national associations and generous entities outside of the credit union industry. To our Fund donors and their institutions in the audience and with us at WCUC, thank you. Even amid war, credit unions stand strong, serving as financial first responders to those in need,” said Mike Reuter, executive director of the WFCU, which serves as WOCCU’s charitable and engagement arm.

A portion of the funds raised is being designated for humanitarian aid efforts to assist credit union members and displaced Ukrainians. The rest is being earmarked for the long-term recovery and rebuilding of Ukraine’s credit union system.

The World Credit Union Conference continues through July 20.