[Congressional Record Volume 155, Number 149 (Thursday, October 15, 2009)]
[Extensions of Remarks]
[Page E2542]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               IN HONOR OF INTERNATIONAL CREDIT UNION DAY

                                 ______
                                 

                           HON. BRAD SHERMAN

                             of california

                    in the house of representatives

                       Thursday, October 15, 2009

  Mr. SHERMAN. Madam Speaker, I rise today to recognize the importance 
and many achievements of credit unions worldwide in celebration of the 
61st annual International Credit Union Credit Day.
  The difference credit unions make in the United States by providing 
affordable and safe financial services to many Americans of moderate 
means has been significant and widely recognized.
  However, the contributions credit unions have made on an 
international scale are equally notable. Since the mid-1800s, credit 
unions have established themselves in communities around the world 
struggling with social dislocation, political unrest and economic 
depression as a means to promote economic growth and democratic 
practices at the local level. Today, more than 54,000 credit unions 
provide financial services to more than 186 million members in 97 
nations.
  Credit unions make a difference on a global scale by providing access 
to affordable financial services for those who otherwise would have 
been excluded from the financial sector. Such financial services 
include the provision of small savings and loans, which enable some of 
the poorest individuals in the world to start their own 
microenterprises, improve household stability and stimulate growth in 
their communities. Credit unions are the largest source of these 
microfinance services in countries as diverse as Colombia, Kenya, 
Russia, Mexico, Thailand and Rwanda.
  Credit unions are also at the forefront of expanding access to 
finance for people living in rural areas who can't afford the time or 
money it takes to visit a financial institution. Credit unions are 
working with the World Council of Credit Unions (WOCCU) to introduce a 
variety of innovative technology solutions to bank the unbanked in 
rural areas. In Mexico, credit union officers carry hand-held personal 
digital assistant (PDA) devices to conduct financial transactions with 
members in communities located up to 90 minutes from the credit union 
office. In Kenya, Peru and Mexico, point-of-sale devices enable credit 
unions to partner with local merchants in rural areas, allowing members 
to deposit and withdraw money from their credit union accounts. 
Finally, mobile banking capabilities in Mexico will enable members to 
check their balances and transfer funds without leaving their homes.
  In addition, credit unions throughout the world are filling the 
agricultural lending gap that has kept the vast majority of small 
farmers stuck in low-production, low-return cycles. In countries such 
as Peru, Kenya and Colombia, credit unions are taking an integrated, 
value-chain approach to financing that includes access to agricultural 
training and markets for farmers to sell their products. As a result, 
farmers are not only increasing their incomes and producing more food 
for their families, they are also playing a role in securing their 
nations' food supply.
  Credit unions have also contributed to post-conflict rebuilding of 
societies and economies in war-torn countries. WOCCU has been on the 
ground in Afghanistan since 2003, working with communities at the 
grassroots level to form the country's first credit unions and rural 
financial system. Afghan credit unions are known as ``Islamic 
investment and finance cooperatives'' in order to comply with Islamic 
lending practices. They are playing a powerful role in communities, 
bringing together people from different tribes to work together to 
finance the individual needs of each other and those of the community 
through reconstruction projects. In Helmand province, for example, 
access to credit provides poppy farmers with the opportunity to start a 
new life by growing alternative crops such as paprika. This will have 
an impact on the overall security and stability of the region.
  As democratically owned and operated not-for-profit financial 
cooperatives, credit unions also contribute to the democratization of 
societies. The one-member one-vote principle of credit unions is often 
the first vehicle for local expressions of democratic participation. In 
many countries, credit unions lead economic democratization, a step 
closer to political democratization by providing economic security and 
sustainability and exposing lower-income communities to free-market 
principles and democratic values that will help eradicate terrorism at 
its roots.
  U.S. credit union members, staff and leagues, along with CUNA and the 
United States government, support the global work of credit unions and 
WOCCU. Through WOCCU's International Partnerships Program, 25 U.S. 
credit union leagues are matched with developing credit union movements 
overseas to encourage the direct transfer of technology, skills and 
experience among peers across borders.
  Madam Speaker, I ask you and my other distinguished colleagues to 
join me in commending the work of credit unions, both domestically and 
internationally, for providing vital financial services that improve 
the lives of people demonstrating the greatest need around the world. 
By providing the world's poor with the most basic financial services, 
credit unions help expand job opportunities, improve local economies 
and promote democracy. In short, credit unions offer a sustainable 
development solution to some of the world's poorest countries, and this 
is the ``credit union difference.''

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