In turn, the Board will need to ensure that the credit union has the systems in place, including, as a minimum, an audit and a credit committee, to ensure transparency and accountability. The legislation will provide for strict reporting requirements and audited financial statements to be submitted three months after the close of the financial year.
I should also note that the new regulatory structure envisages the introduction of a mandatory insurance fund for the protection of members’ deposits and shares. As in the case of the commercial banks, the protection will have a certain threshold, which will be determined in collaboration with the credit union movement.