Risk Management in Lithuanian and Irish Credit Unions: Trends and Impacts on Credit Union Development

The aim of this article is to examine the Irish and Lithuanian credit union movements in terms of risk management and risk performance, and to discuss credit union risk regulation. Risk management in credit unions often closely relates to credit union development stages so that as credit unions mature, higher standards of risk management should be implemented. In some cases these changes are accompanied by shifts in the regulatory framework. A comparison of the situations in Lithuania and Ireland offers some interesting and sometimes unexpected contrasts in the levels of credit union regulation. Despite the comparatively advanced stage of development of the Irish movement, key aspects of risk regulation are considerably more lenient than in Lithuania, where the credit union movement is far smaller and less developed, yet at the same time, more tightly regulated. This comparison demonstrates that the regulatory regime is not always aligned with the stage of credit union development and may, indeed, reflect the economic policies of the country in which they operate.Agribusiness,

The Centre for Co-operative Studies in co-operative education and research

The Centre for Co-operative Studies is a university research centre which promotes education, training, independent research and consultancy in all aspects of co-operative organisation, social enterprise and local development. It is the only third level centre or department in Ireland focusing on co-operatives. Co-operative research and education in the Centre aims to have both an academic and practical relevance. It takes an interdisciplinary, problem-centred approach and is conducted with a multi-disciplinary perspective, focusing on the practical solution of key problems in the real world. This paper examines the role of the Centre in co-operative education and research and explores the impact this has had on the co-operative movement

A values perspective of the Irish credit union movement

It is important for all co-operatives, including credit unions to continue to energise and re-energise their core values, particularly in the context of a rapidly changing environment. This article firstly identifies briefly the values inherent in co­ operatives such as credit unions and then explores how some of these operate in practice, drawing mainly on co-operative theory and on the author's experience as a practitioner within the Irish credit union movement. Some lessons are then drawn up that might be learned by credit unions in the UK and elsewhere from the successes and difficulties of the Irish credit union movement

Ongoing research issues. Governance, identity and ethics in education

Summaries of papers from abstracts selected of papers the XXI International Co-operative Alliance, Cooperatives Research Conference, held in University College Cork, 2005 for readers of the journal

Risk management in Lithuanian and Irish credit unions: Trends and impacts on credit union development

The aim of this article is to examine the Irish and Lithuanian credit union movements in terms of risk management and risk performance, and to discuss credit union risk regulation. Risk management in credit unions often closely relates to credit union development stages so that as credit unions mature, higher standards of risk management should be implemented. In some cases these changes are accompanied by shifts in the regulatory framework. A comparison of the situations in Lithuania and Ireland offers some interesting and sometimes unexpected contrasts in the levels of credit union regulation. Despite the comparatively advanced stage of development of the Irish movement, key aspects of risk regulation are considerably more lenient than in Lithuania, where the credit union movement is far smaller and less developed, yet at the same time, more tightly regulated. This comparison demonstrates that the regulatory regime is not always aligned with the stage of credit union development and may, indeed, reflect the economic policies of the country in which they operate.Part of Journal of Rural Co-Operation Vol 34 No. 2: A selection of articles presented at the XXI International Co-operatives Research Conference on The Contribution of Co-operatives to Community Culture, held at Centre for Co-operative Studies, University College Cork, Ireland (11-14 August 2005

Sustaining the co-operative approach in an era of change: A case study from Cork Ireland

This collection of essays draws together the research of fourteen international scholars to examine how the co-operative business model functions in practice within diverse cultural and social contexts. It includes case studies of co-operatives and credit unions operating in different national settings across Britain, continental Europe, Australasia and the Americas. Together the essays show how the concept of democratic co-operation, applied to enterprise in commercial markets, developed into the basis of a truly global movement. The Co-operative Model in Practice will be of interest to students and scholars in economics, business studies, sustainable development, history, and organisational theory and behaviour. It also serves as a valuable resource for policy-makers seeking alternative models for organising enterprise and society

The management of lending risk in Irish community credit unions

Traditional loan assessment carried out by credit unions has been centred on the members’ history of savings and loan repayment record with their credit union. This has been in keeping with the member-owned, voluntary, self-help co-operative principles of credit unions in providing financial services to their members. In more recent times, Irish credit unions have been challenged to adopt a more formal approach to managing lending risk management in the context of a changed economic and regulatory environment. This paper examines lending risk management and its associated governance in four community credit unions in Ireland during two points in time. The first is between 2008 and 2012, a period marked by economic recession and traditional loan assessment. It then examines the revised approach to lending risk management adopted by credit unions post 2012 following a series of legislative and regulatory change for credit unions where more formal risk management processes and enhanced governance were introduced. It was found that lending by credit unions which maintained prudent management of loan risk outperformed lending by credit unions which took a less prudent approach. In addition, the study demonstrates how the application of risk management principles to the lending process can bring a level of clarity and a structure to loan underwriting, thereby enhancing the quality of the process. Good governance principles can positively influence the lending process and should provide the basis for a sound lending environment

Cork MABS study: Clients' experiences, opinions and satisfaction levels

This study evaluates the Cork MABS service in terms of client satisfaction. The research found that there is an exceptionally high level of satisfaction with the MABS service among its clients. Cork MABS is seen by its clients as a highly professional and caring service. A large number of clients cited the peace of mind and the reassuring nature of the money advice process for them. It was found that there is a significant relationship between the perceived overall outcome in terms of clients’ ability to manage their financial affairs in a better way and their level of satisfaction with the service. Clients value the longer-term impacts as well as the more immediate money advice service. Some issues raised by clients were the need for more information on benefits and allowances and greater support in negotiating with creditors. For a small number of clients, particularly in the older age category, there were continuing uncertainties about the confidentiality of the service. There was some frustration about the length of time that clients had to wait for their first appointment with a money advisor. A significant relationship was found between waiting times and clients’ overall levels of satisfaction with the MABS service. The study makes a number of recommendations, most of which hinge on maintaining the current high level of support for MABS clients. Without this support, it is likely that satisfaction levels will begin to fall, and clients will suffer. The ethos of Cork MABS from the start has been about self-help and it continues to promote self-help over dependency among its clients. This in turn works to improve the financial capability of clients in the longer run which has wider societal benefits