Thailand

Philippines

I n d o n e s i a

Papua New Guinea

Lao PDR

Cambodia

Vietnam

Hong Kong

Taiwan

Japan

South Korea

China

Mongolia

Nepal

Bangladesh India

Bhutan

Malaysia

Singapore

Afghanistan

Pakistan

Myanmar

Sri Lanka

Brunei

R u ss i a

North Korea

East Timor

Report of the Association of Asian Confederation of Report of the Association of Asian Confederation of Credit Union ACCU Credit Union ACCU

7 Asia-Pacific Co-operative Ministers’ Conference New Delhi India

Ranjith Hettiarachchi Ranjith Hettiarachchi Chief Executive Officer Chief Executive Officer

0

2000

4000

6000

8000

10000

12000

14000

16000

1972 1980 1990 2001

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

1971 1980 1990 2001

0

5000

10000

15000

20000

25000

30000

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

No. of Credit Unions

Individual Members of Credit Unions

Assets in Million US$

“credit unions are touching the lives of more than 10 .5

million people in Asia.”

Members: The Source of Great Strength

10,570,827 Individual Members in 15,494 credit unions

15 regular members 6 net working countries

15 Regular Members 1. Credit Union League of Bangladesh

2. Credit Union Coordination of Indonesia

3. Credit Union League of Hong Kong

4. Credit Union Promotion Club- Malaysia

5. Credit Union League of the Republic of China - Taiwan

6. Credit Union League of Thailand

7. Federation of Savings and Credit Cooperatives - Thailand

8. Federation of Thrift & Credit Cooperatives Societies - Sri Lanka

9. Japan Credit Unions

10. National Credit Union Federation of Korea

11. Nepal Federation of Savings & Credit Cooperatives

12. Philippine Federation of Credit Cooperatives

13. National confederation of Cooperatives in Philippines

14. Federation of Savings and loan Society Ltd PNG

15. Central Peoples Credit Fund Vietnam

9 Affiliate Members

CUNA Mutual Group – USA Credit Union Foundation Australia

International Raifeisen Union –GermanyResearch Institute of Labour Banks-Japan

Singapore National Cooperative Federation Ltd. Mol-Al-Movahedin Credit Cooperative-Iran

Cambodian Community Savings Federation Development Promotion Group India

USC Nepal

Supporter Members 19

Why this is happening?

1.Social welfare image in the marketplace

What are the issues in Credit Unions

2. Lack of enabling legislative & regulatory environment that could impose prudent operating standards

What are the issues in Credit Unions

3. Professional management

What are the issues in Credit Unions

4. A highly competitive and rapidly evolving financial sector

This ismy vision..

TODAY….

““PERSONALIZATIOPERSONALIZATION”N”President, Board of Directors are important…..

“INSTITUTIONALIZATION”Institution is important the framework for thesystem to work is installed ...

FUTURE..YEAR 2002 & beyondTRANSITION...

This is painful but necessary!

Our CU is smart & strong!

By-Laws ChangesPolicy dev’t. & reviewProduct DevelopmentStandardizationIntegration

This is all we’ve got to do!!!

Our modest achievement.Our partnership with members enabled “Have Less” build wealth through savings and access an affordable financial services.

A Savings Based Approach to Microfinance

CUMI

Supporter Members

Microfinance

Putting Credit Unions in the Frontline

MembersEngaging Credit UnionsMake difference Have

Less

On the lives

Microfinance Innovation Innovation in Credit Unions ….as a strategy

We strongly forward looking to meet We strongly forward looking to meet the growing and diversified urge the growing and diversified urge

Credit Unions and their services be Credit Unions and their services be needs of the poor….Bangkok needs of the poor….Bangkok

DeclarationDeclaration

MembersBuilding Strong Support Base

Professionalization

Of Credit Unions in

Asia

Professionalization

Of Credit Unions in

Asia

Our achievement so far…

We are creating sustainable mechanisms whereby our

members can build on fundamentals of credit union

systems, procedures and norms thereby increasing their

competitiveness.

Credit Union Image in the Marketplace

Monitoring & Evaluation Systems - Integrated System

Financial Disciplines& AdministrativeControl Systems

Human ResourceHuman ResourceDevelopmentDevelopment

SystemSystem

Market Information& Product Dev’t.

System

CharacterCompetence

Compensation

Market DrivenHigh Quality

Profit Oriented for better service

Uncompromised

Financial Strength &Administrative

Controls, Standardize Operations

Policies - Comprehensive

Below the Ground… Core Foundation PrinciplesAttitude, Visionary, Honesty, Courageous, Integrity, Sacrifice

SafeInstitution

QualityProducts & Services Trust-

Worthy People

External

External Appearance

What are we really aiming for?

Key Success Factors•Financial viability

•Operational Efficiency

•Competitive position

•Member satisfaction

•Employee satisfaction

Mapping the Credit Union’s future

Financial

viability

Operational

Efficiency

Competitive

position

Member satisfactio

n

Employee satisfacti

on

How do we Achieve? Financial viability

Operational

Efficiency

Competitive

positionMember satisfactio

n

Employee satisfactio

n

What would be the ToolsFinancial viability

Operational

Efficiency

Competitive

positionMember satisfactio

n

Employee satisfactio

n

Financial Management

Planning Tools for growth

Products and Services

Human Resource Management

Organizational Policies-Framework of

the organization

Management Tools Developed

1. Organization & Governance

2. Human Resource

3. Financial Management

4. Credit Management

5. Products & Services

Regulators conference On October 26 to 30 2003 . Bangkok

Declaration

Bangkok Declaration

together we renew our commitment….

•

national policy on standards and compliance of

Credit Recognition of the Central Bank for the financial

cooperative

Separate Law for Savings and Credit

cooperative

by establishing appropriate, relevant framework and mechanisms for regulation for the safe and sound

operation of Credit Cooperatives/Unions. Members first at all times

prudential standards for credit union and ensure compliance with

the joint efforts of government regulatory authority and the Credit

Cooperative/Union Federations

We believe putting members

is the best guiding principle for us to operate

Our existence is for the members

The source of our strength is our members

With that our plans, policies, governance,

services and products will follow

that principle….member driven.

Thank you very much!

Please visit our website:

www.aaccu. coop