HM Treasury News Release

123/98                                      28 July 1998

     TASKFORCE TO LOOK AT HOW BANKS CAN HELP CREDIT UNIONS
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Helping more people on low incomes gain access to financial
services is the main aim of a Taskforce established today by
the Economic Secretary, Helen Liddell.

The Taskforce, chaired by Fred Goodwin, Deputy Group Chief
Executive of the Royal Bank of Scotland, will look at ways
banks can help credit unions. Its remit will be to:

     explore ways in which banks and building societies can
     work more closely with credit unions to increase their
     effectiveness;

     look at ways to widen the range of services that are
     provided to credit union customers; and

     encourage the continued expansion of the movement.

Its role will be to identify best practice in these areas and
how this can be promoted more widely as well as proposing new
areas for co-operation.

Helen Liddell said:

     "Credit unions have an important role as a place for
     savings and source of low cost credit for the less well-
     off. They can also provide a first rung on the ladder of
     financial services for young people.

     "We want to build on that. If banks and credit unions
     work together we could see more people having access to
     bank accounts and credit who do not presently do so."

The Taskforce membership will be made up of senior
representatives from banks, building societies and the credit
union movement. The Treasury will provide the secretariat. 

The first meeting will be held around September. The Taskforce
will be asked to produce a first report by the turn of the
year and a final report by the middle of next year.


NOTES TO EDITORS

1.   Some banks already co-operate with credit unions through:

     access to payments systems;
     free or low cost banking;
     favourable rates on credit union deposits;
     gifts of premises or equipment;
     staff training; and
     bank staff secondments.

2.   There are over 600 credit unions registered in Great
     Britain with membership of over 200,000. In 1997 credit
     unions had share capital of around #104 million.

3.   If you have access to the Internet, you can find this
     news release and other Treasury information at
     http://www.hm-treasury.gov.uk.

# = pounds sterling