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To ask Her Majesty's Government what plans they have to review the regulations concerning credit unions.
In 2014, the Government undertook a call for evidence to understand the appropriate steps that could be taken to support the credit union sector. Subsequently, the maximum interest a credit union can charge on loans was raised from 2% to 3% per month, and the upper limit on the geographical common bond was raised from 2 to 3 million people.
The Government continues to be open to considering the case for further reform. ABCUL, the sector’s largest trade body, is currently carrying out a sector-wide consultation which is due to conclude later this year. HMT will consider its conclusions in the development of future credit union policy.
At Autumn Budget 2018, the Government announced a package of measures to support credit unions, and other social and community lenders, including:
The PRA have also proposed a simplified, proportional capital requirement regime for credit unions in their recently published consultation.