Village Banking Services within a CU!

---

Provide village banking services within a credit union! In partnership with Freedom from Hunger (FFH), WOCCU is implementing a Savings and Credit with Education program in Mindanao, Philippines. A minimum of ten existing credit unions are to be transformed into model credit unions. FFH is taking the lead in forming women's solidarity groups and consolidating them into savings and credit associations (SCAs) for purposes of group saving and borrowing at nearby model credit unions.

Quarter nine results (July-September 1999) show that twelve credit unions have contracted with the project to meet minimum prudential operations standards, to prepare business and marketing plans and to modify bylaws and policies to allow lending to groups and to meet safety and soundness requirements. All are making great strides in such areas as aging and reducing delinquency and creating transparent financial statements. Overall, external borrowing was 68 percent less than the 1997 rate. Operating expenses had decreased and were well within the standard. Asset growth stood at 3.8 percent despite massive loan charge-offs. Sixty nine percent of borrowers were micro borrowers (less than USD $250) and they hold a 66 percent share of the loan portfolio. Women make up 70 percent of credit union membership.

Also by quarter nine, 362 savings and credit associations (SCAs) had been formed, providing financial services to 9,880 participants. Although the SCAs focus primarily on savings 9,274 women received loans during this quarter. Loan repayment was 100 percent.