CUA / ILCUF WORKSHOP JUNE 9 TH -11 TH, 2012 SUMMARY OF CREDIT UNIONS OPERATIONS

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1 CUA / ILCUF WORKSHOP JUNE 9 TH -11 TH, 2012 SUMMARY OF CREDIT UNIONS OPERATIONS

2 BACKGROUND OF CREDIT UNIONS IN GHANA The Credit Union Movement in Ghana started some fifty seven (57) years ago. Precisely the first credit union was established in 1955 at Jirapa in the Upper West Region. The early credit unions were all parish/community based that spread throughout the three Northern Regions of Ghana. The trend changed when the credit union idea was introduced in the southern part of Ghana. At that time it was dominated by work-based credit unions.

3 BACKGROUND OF CREDIT UNIONS IN GHANA In recent times almost all credit unions have opened their common bonds to attract people from diverse backgrounds as members. To date, there are 450 credit unions in the country.

4 BACKGROUND OF CREDIT UNIONS IN GHANA Accumulated Deposits GH 254,519,000 Loans Outstanding Total Assets -GH247,865,000 - GH289,987,000 No of Credit Unions 409 Total Membership 368,136

5 BACKGROUND OF CUA The Ghana Co-operative Credit Union Association (CUA) Limited, the apex body for the credit unions was formed by the few credit unions that existed at that time in 1968.

6 CUA MISSION CUA LTD seeks to become a leading cooperative financial institution in Ghana, providing financial and technical products and services to members, and build a strong and committed staff to create an enviable image in the country.

7 CUA LTD seeks to become a leading cooperative financial institution in Ghana, providing financial and technical products and services to members, and build a strong and committed staff to create an enviable image in the country.

8 CUA MISSION CUA LTD is a Financial Co-operative Organization. Its aim is to be self-sustainable to be able to facilitate an enabling environment, provide quality financial services to members as well as market the credit union concept in order to make Credit Union a household word.

9 SUMMARY OF CUA OPERATIONS It provides an array of services to credit unions including development services, education and training at all levels, liquidity reserve management and investment services, credit union insurance etc. It also unites credit unions in a strong network, providing public relation services and advocacy to government and media etc.

10 SUMMARY OF CUA SERVICES Field Services Audit Services Education and Training Computer Services Youth and Health Gender The Credit Union Training Center

11 SUMMARY OF CUA SERVICES Central Finance Facility Risk Management Deposit Guarantee Micro Finance For the Poor Local Money Transfer Remittances

12 CUA operates in all the ten regions in Ghana and has maintained regional offices since 1972

13 REGULATORY ENVIRONMENT Credit Unions in Ghana are affiliated to the Ghana Co-operative Credit Union Association (CUA) Limited. CUA then recommends them to the Department of Co-operatives under the Ministry of Manpower Development and Employment for registration under the NLC Decree of 1968 Section 252 to become legal entities

14 REGULATORY ENVIRONMENT JOINT SUPERVISION CUA/DOC Promotion Supervision Auditing Attendance at Annual General Meetings Affiliation and Registration Supervision: Placing a credit union under close supervision. Suspension of ineffective Boards and Management Complete take-over

15 THE NON BANKING FINANCIAL INSTITUTIONS (NBFI) LAW The Bank of Ghana shall licence all Credit Unions and supervise their management and operations. Subject to the powers and functions of the Bank of Ghana under the Constitution and any other enactment, the Bank may by notice delegate specified supervisory functions to the Ghana Co-operative Credit Unions Supervisory Board.

16 THE NON BANKING FINANCIAL INSTITUTIONS (NBFI) LAW These Regulations apply to all Credit Unions registered under the law governing the registration of Credit Unions and licensed by the Bank of Ghana The object of these Regulations is to establish the Ghana Co-operative Credit Union Supervisory Board to provide for its functions and make rules governing the licensing, operations and supervision of Credit Unions.

17 BENEFITS FROM THE EU PROJECT TO CUA CAPACITY BUILDING FOR CUA STAFF SHARE OF EXPERIENCES AND KNOWLEDGE WITH OTHER CU MOVEMENTS IN WEST AFRICA. SUPPORT FOR THE FULL UTILIZATION OF THE CREDIT UNION TRAINING CENTER STRENGHTENING OF THE VALUE CHAIN SYSTEM BETWEEN SEND FOUNDATION AND CUA AND REPLICATION IN OTHER COUNTRIES

18 END OF PRESENTATION THANK YOU