Webinar on the Response of Asian Credit Unions to COVID 19 Crisis
- Date : Thursday April 23, 2020
- Venue : Bangkruay
ACCU was grateful to 23 participants of the Webinar organized jointly by World Council of Credit Unions (WOCCU) and Association of Asian Confederation of Credit Unions (ACCU) on April 21.
The presentations by the World Council were on the 3 waves of COVID 19 impact and the regulatory responses of credit unions across the globe. The CEO of the National Confederation of Cooperatives (NATCCO) - the Philippines (Sylvia Paraguya) and CEOs of the Nepal Federation of Savings and Credit Cooperative Unions Ltd. (Shivajee Sapkota) and the National Cooperative Bank Limited – Nepal (Badri Guragain) presented the impacts and responses of their network in protecting their members against the virus.
ACCU CEO shared some of her thoughts to consider by credit unions to counter the impact of COVID 19:
Member level: apply the self-sufficiency or self-help philosophy. Had credit unions applied this principle, members would be able to cope up with the impacts of COVID 19. Our financial education suggests that members need to have at least 6 months of their family expenses as their security savings or emergency fund. During the lockdown, members are relying on government or credit union relief operations to feed their families. In coping with COVID 19 and for future emergencies, there is a need to revisit the implementation of the self-sufficiency principle to strengthen the credit union network’s resilience and self-immunity.
Institutional level: credit unions must be prudent and focused on managing their cash flow. While many of your members may experience financial difficulties and default on payments in the coming months:
There is a need to project the numbers of members who cannot make payments as it will affect the cash flows.
Reduce expenses as much as possible
Avoid granting new loans that would lead to over-indebtedness of members.
Make credit available to support viable member enterprises to restart and grow business after the pandemic. The lending terms and conditions can be adjusted as the environment drastically changed during and after the pandemic.
Institutional Capital: is the cushion of credit unions or any financial institutions during this stressful time. We see ACCU and the federations working closely with regulators to ensure credit unions are complying on IC standards.
Digital means – we need to gather our acts together to accelerate the digitization process of our credit union networks to ensure that credit unions can serve their members without disruption.
Regulators: as agreed in the Sept. 2019 workshop to strengthen our partnership with regulators and in this crisis, ACCU and its members need to reach out for the regulatory back up needed by credit unions.
The webinar provides practical inputs for the Credit Union Toolkit in Response to Pandemic. ACCU is currently developing a tool which will be shared with members. The next technical meeting will be organized in May to present the toolkit.
Here is the link to the webinar: https://www.youtube.com/watch?v=hBt-V15jqgE