NEW YORK (11/27/13)--An analyst for the National Federation of Community Development Credit Unions presented an upcoming federation report on secondary capital and its use by U.S. community development credit unions (CDCUs) at the Fourth Annual Asia Future Forum in Seoul, Korea.
National Federation of Community Development Credit Unions Analyst Cathi Kim presented information from an upcoming federation report on U.S. community development credit unions' use of secondary capital at a session of the Fourth Annual Asia Future Forum in Seoul, Korea. (Photo provided by the National Federation of Community Development Credit Unions)
Cathi Kim, federation analyst, represented the federation at the forum, whose theme was "Era of Inclusive Growth: Innovation of Enterprise and Society" and which focused on innovations in social economy. The event attracted more than 500 attendees from Japan, China and Korea.
Presenting at the Community Finance session Oct. 31, Kim provided background on the products, services and delivery systems that U.S. CDCUs provide to low- and moderate-income Americans.
Secondary capital, or supplemental capital, is of particular interest to Korea's credit unions, which have continued to grow in deposits and loans despite the downturn in the global economy, said the federation. "Secondary capital loans are long-term loans that growing credit unions can use to expand lending in their communities," Kim said. "Secondary capital counts toward the credit union's net worth for the initial period of the loan, improving net worth and helping credit unions meet required capital standards. Several federation members have used secondary capital loans to great success," she said.
Korea's credit union movement is the fourth largest worldwide, with 950 credit unions, six million members and US$52 billion in assets. The National Credit Union Foundation of Korea describes the movement there as providing "high value financial services for low and middle income families while promoting the value of cooperation."
Kim said interest among forum attendees was particularly high because there is no CDCU equivalent in Korea. She noted it is "important to strengthen and solidify the basis for social finance, especially community finance [which] is increasing around Seoul."
The federation will announce its next funding round, including secondary capital, later this month.