Credit Union Vulnerabilities in the Financial System: An Analysis and How to Respond


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Swoboda is excited to publish a new report from Ismail Ertürk, of the Alliance Manchester Business School, on how credit unions are made vulnerable by the way the financial system is managed by policymakers and regulators.


Ismail’s detailed and challenging argument is that the influence of the Basel approach to risk and regulation puts constraints on credit union business models that are unreasonable and constrain their ability to maximise the social good they could deliver. He predicts that given institutional and governmental indebtedness, central bank interest rates will remain low in at least the medium term, so credit unions should expect continued limitations on returns from liquid deposits.

This is a rigorous piece of work, taking an international perspective on the financial system, while analysing what this means for credit unions in Ireland and Britain.