Credit unions oppose regulation aimed at solidifying the market

Part of the credit unions operating in Lithuania are opposing a new law aimed at solidifying the market.

The Ministry of Finance drafted the law in response to a series of bankruptcies three years ago which cost €120 million to the state-run deposit insurance fund.

The legislation is intended to allow more oversight and solidification in the market. One of the measures envisages credit unions setting up a joint fund to share the risks.

The Lithuanian Association of Credit Unions, which has 60 members, agrees with the new rules.

However, the measures are opposed by 12 companies that are not members of the association. They believe that regulations forcing credit unions to share losses is unfair.

LRT