Mr. Michael Edwards:

With regard to Deputy Higgins's question on the United States, I am based in Washington DC and prior to joining the World Council of Credit Unions I worked for the Credit Union National Association in the United States, so I am well familiar with the US system. Two of the features of the US system which have led it to have 94 million members and 7,200 institutions are shared branching and credit union service organisations. Almost all credit unions in the United States belong to a shared branching network whereby one can go into any credit union and make a transaction for up to $800. Credit unions throughout the country share ATMs. Credit unions can co-operate with each other and achieve economies of scale which otherwise would not be possible without major amalgamations of the institutions. These can help maintain the local character of credit unions and local autonomy while also allowing a wider range of services than would otherwise be available.

With regards to term limits in the United States, for federally chartered credit unions, which make up 60% of the industry, term limits are not allowed. They are considered to be anti-democratic. For the other 40%, which are state chartered, it varies according to state law. It can be voluntary. However, usually this occurs only if there is a geriatric board which needs to engage in succession planning and needs new blood because everyone is above retirement age.