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CAPACITY BUILDING BETWEEN LITHUANIAN CENTRAL CREDIT UNION AND CREDIT UNIONS

MICROCREDIT PROJECT

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WHAT IS A CREDIT UNION?

A credit union is a financial institution organised on co-operative basis which provides services only to its members.

Credit union members set up a mutual saving fund from which they grant loans to each other under acceptable conditions established for themselves.

Members join together on the basis of a territorial criteria and democratically manage the credit union in observance of applicable laws.

NETWORK OF CREDIT UNIONS

~ 112.000 MEMBERS

61 credit unions ( +115 BRANCHES)

OTHER BANKS

ELECTRONIC PAYMENTS SYSTEM

(CENTRAL BANK)

CENTRAL CREDIT UNION ASSOCIATION OF LITHUANIAN

CREDIT UNIONS

LIQUIDITY FUND

DEPOSITS, CREDITS, INVESTMENTS ...

STABILIZATION FUND

STATE DEPOSIT INSURANCE FUND

(UP TO 100.000 EUR PER PERSON)

0,2%

PAYMENTS SYSTEM

OTHER SERVICES (TRAINING, IT...)

CENTRAL BANK OF LITHUANIA

(SUPERVISOR)

FINANCIAL PARTNERS

61 credit unions and 115 branches, 340 mln. EUR in assets, 112.000 members in 15 years

INSPECTIONS AND MONITORING

STRUCTURE OF CREDIT UNIONS NETWORK IN LITHUANIA

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LCCU SERVICES TO CREDIT UNIONS

• Deposits• Loans, overdrafts, credit lines• Interbank local payments• Support of payment cards (debit and credit)• Internet banking• Liquidity fund and liquidity management • Stabilization fund and management of cu solvency• Credit unions monitoring and inspections• Consultancies• Legal assistance• Development and maintenance of IT systems • Training• Marketing • Representation

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CREDIT UNIOMS SERVICES

Deposits (current, savings, term deposits accounts) Loans (mortgage, business, consumer, studies, farming) Overdrafts, credit lines National and international payments Payment cards (Maestro debit and Mastercard credit) Internet banking Advices

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MICROCREDIT PROJECT

Project – Microcredit project

Lead Partner - Lithuanian Central Credit Union

Partners - 57 credit unions in Lithuania (154 outlets/points of sales)

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ROLE OF LCCU

Coordination and administration of project activities

Consultation of credit unions on evaluation of business plans

Cooperation with social partners Dissemination of information

STRENGTHS OF LCCU

LCCU has extensive experience in organizing trainings for employees, board members and credit unions.

Every year it organizes in average about 40 trainings, in which about 600 employees and board members participate.

Experience in 2 training projects supported by European Social Fund.

Direct contacts with potential participants of the project Support to start-up businesses Evaluation of business plans Supervision of businesses financed

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ROLE OF CREDIT UNIONS

STRENGHTS OF CREDIT UNIONS

Close to local communities Active in regions Know how in working with small loans Broad network of points of selling Knowledge of local possibilities, businesses

potentials, local businesses

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LCCU - CU

Project consultants provide consultations and analysis/expertise on business plans submitted to credit unions.

Credit unions - deeper knowledge of local market and business possibilities.

Joint efforts – more realistic and deeper evaluation of business ideas and business plans – capacity building on both sides.

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COOPERATION WITH TRAINING PARTNERS

Business Support/Advice Centres

Experience, relationship with small and medium businesses, know how in trainings and consultations in business development issues.

Dissemination of information about new financial resources/possibilities to local businesses.

Provision of trainings and individual consultations on business establishment/development, cooperation with credit unions.

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COOPERATION WITH SOCIAL PARTNERS

Labour exchange offices Non-governmental organizations Local communities

Dissemination of information to priority groups about microcredits and trainings on business development.

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LCCU - CU

Project consultants provide consultations and analysis/expertise on business plans submitted to credit unions.

Credit unions - deeper knowledge of local market situation and business possibilities.

Joint efforts – more realistic and deeper evaluation of business ideas and business plans – capacity building on both sides.

SOCIAL ASPECTS AND IMPACT

Establishment of new businesses More income Decrease in unemployment More active communities

CHALLENGES

Uncertanty of economical situation Lack of entrepreneurship skills and

knowledge Fear to start own business

MOTIVATION, TRAININGS, CONSULTATIONS

1919

THANK YOU!