Strong Bonds: Maintaining a commitment to mutuality in a deregulated environment – the case of Australian Credit Unions
Since the 1980s Australian credit unions have faced a raft of regulatory changes. These changes have made it increasingly difficult for credit unions to maintain a commitment to mutuality. This paper outlines the impact of regulatory change on credit unions as they seek to operate in a ‘deregulated’ financial services environment. The paper compares the responses of two credit unions to these changes. In one case the credit union emulated the strategies of the large retail banks, while, the other credit union maintained a commitment to the principles of mutuality and co-operativeness. Comparing these two credit unions against the backdrop of regulatory change highlights the importance of credit unions creating and sustaining a distinct organisational identity through a strong bond of association with their members.