Cornwall

Cornish Community Banking credit union's funding crisis

  • 29 January 2013
  • From the section Cornwall

A crisis meeting is being held to try to rescue a Cornish credit union which could be on the brink of collapse.

Last autumn Cornish Community Banking warned it was close to insolvency and some members had been unable to get loans they were relying on.

The Financial Services Authority (FSA) said it has been in regular touch with Cornish Community Banking.

The FSA said it was aware of the issues facing the group but it was not insolvent at the moment.

Funding withdrawn

The organisation, which has about 2,500 members, had previously received "significant" grant funding from Cornwall Council and central government to help "grow" the business.

But the Department of Work and Pensions growth fund initiative finished last year and the funding was withdrawn.

In November 2012, the board of Cornish Community Banking proposed a merger with Kernow Credit Union, but the proposal was rejected by the members.

Members will be asked at the meeting in Truro City Hall to vote to replace the credit union's current board.

Cornish Community Banking has declined to comment.

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