2. Report of the Association of Asian Confederation of Credit Union ACCU 7 Asia-Pacific Co-operative Ministers’ Conference New Delhi India Ranjith Hettiarachchi Chief Executive Officer

3. No. of Credit Unions Individual Members of Credit Unions Assets in Million US$ “ credit unions are touching the lives of more than 10.5 million people in Asia. ”

4. Members : The Source of Great Strength 10,570,827 Individual Members in 15,494 credit unions 15 regular members 6 net working countries

5. 15 Regular Members 1.Credit Union League of Bangladesh 2.Credit Union Coordination of Indonesia 3.Credit Union League of Hong Kong 4.Credit Union Promotion Club- Malaysia 5.Credit Union League of the Republic of China - Taiwan 6.Credit Union League of Thailand 7.Federation of Savings and Credit Cooperatives - Thailand 8.Federation of Thrift & Credit Cooperatives Societies - Sri Lanka 9.Japan Credit Unions 10.National Credit Union Federation of Korea 11.Nepal Federation of Savings & Credit Cooperatives 12.Philippine Federation of Credit Cooperatives 13.National confederation of Cooperatives in Philippines 14.Federation of Savings and loan Society Ltd PNG 15.Central Peoples Credit Fund Vietnam

6. 9 Affiliate Members CUNA Mutual Group – USA Credit Union Foundation Australia International Raifeisen Union – Germany Research Institute of Labour Banks-Japan Singapore National Cooperative Federation Ltd. Mol-Al-Movahedin Credit Cooperative-Iran Cambodian Community Savings Federation Development Promotion Group India USC Nepal Supporter Members 19

7. Why this is happening? 1.Social welfare image in the marketplace

8. What are the issues in Credit Unions 2. Lack of enabling legislative & regulatory environment that could impose prudent operating standards

9. What are the issues in Credit Unions 3. Professional management

10. What are the issues in Credit Unions 4. A highly competitive and rapidly evolving financial sector

11. This is my vision.. TODAY …. “ PERSONALIZATION ” President, Board of Directors are important ….. “ INSTITUTIONALIZATION ” Institution is important the framework for the system to work is installed... FUTURE..YEAR 2002 & beyond TRANSITION... This is painful but necessary! Our CU is smart & strong! By-Laws Changes Policy dev ’ t. & review Product Development Standardization Integration This is all we ’ ve got to do!!!

12. Our modest achievement. Our partnership with members enabled “ Have Less ” build wealth through savings and access an affordable financial services. A Savings Based Approach to Microfinance CUMI

13. Supporter Members Microfin ance Putting Credit Unions in the Frontline

14. Members Engaging Credit Unions Make difference Have Less On the lives Microfinance Innovation Innovation in Credit Unions ….as a strategy

15. We strongly forward looking to meet the growing and diversified urge Credit Unions and their services be needs of the poor ….Bangkok Declaration

16. Members Building Strong Support Base on e Professionalization Of Credit Unions in Asia Professionalization Of Credit Unions in Asia

17. Our achievement so far … We are creating sustainable mechanisms whereby our members can build on fundamentals of credit union systems, procedures and norms thereby increasing their competitiveness.

18. Credit Union Image in the Marketplace Monitoring & Evaluation Systems - Integrated System Financial Disciplines & Administrative Control Systems Human Resource DevelopmentSystem Market Information & Product Dev’t. System Character Competence Compensation Market Driven High Quality Profit Oriented for better service Uncompromised Financial Strength & Administrative Controls, Standardize Operations Policies - Comprehensive Below the Ground … Core Foundation Principles Attitude, Visionary, Honesty, Courageous, Integrity, Sacrifice Safe Institution Quality Products & Services Trust- Worthy People External Appearance

19. What are we really aiming for? Key Success Factors Financial viability Operational Efficiency Competitive position Member satisfaction Employee satisfaction

20. Mapping the Credit Union ’ s future Financial viability Operational Efficiency Competitive position Member satisfaction Employee satisfaction

21. How do we Achieve? Financial viability Operational Efficiency Competitive position Member satisfaction Employee satisfaction

22. What would be the Tools Financial viability Operational Efficiency Competitive position Member satisfaction Employee satisfaction Financial Management Planning Tools for growth Products and Services Human Resource Management Organizational Policies- Framework of the organization

23. Management Tools Developed 1.Organization & Governance 2.Human Resource 3.Financial Management 4.Credit Management 5.Products & Services

24. Regulators conference On October 26 to 30 2003. Bangkok Declaration

25. Bangkok Declaration together we renew our commitment …. national policy on standards and compliance of Credit Recognition of the Central Bank for the financial cooperative Separate Law for Savings and Credit cooperative by establishing appropriate, relevant framework and mechanisms for regulation for the safe and sound operation of Credit Cooperatives/Unions. Members first at all times prudential standards for credit union and ensure compliance with the joint efforts of government regulatory authority and the Credit Cooperative/Union Federations

26. We believe putting members is the best guiding principle for us to operate Our existence is for the members The source of our strength is our members With that our plans, policies, governance, services and products will follow that principle ….member driven.

27. Thank you very much! Please visit our website: www.aaccu. coop www.aaccu. coop