10 Sep 2012

Credit Unions want to get into business lending

7:17 am on 10 September 2012

Credit Unions want to lend money to small business and are urging changes to the legislation that stops it from doing so.

The New Zealand Association of Credit Unions says the laws governing the way credit unions operate are archaic, and the Friendly Societies and Credit Unions Act needs to be overhauled.

Changes have already led to the removal of a $250,000 deposit limit per owner member.

But the association wants to go further, scrapping the need for two trustees to oversee their operations, and extend their services to the small and medium sized business market which they currently cannot do.