PRA tries to give consumers confidence that they will not lose their money if a credit union fails

Credit unions need new rules to reflect the broader range of financial services offered by the local loan and savings organisations, the Bank of England has said.
The central bank's
Prudential Regulation Authority
(PRA) published proposals to reform regulation of credit unions, which are being promoted by policymakers and the Church of England as a viable alternative to costly payday lenders and a banking sector tarnished by
scandals
and the
financial crisis
.
The PRA, which supervises lenders and insurers, proposed the removal of existing rigid restrictions to give boards of credit unions more freedom to decide how their businesses are run. "These changes will introduce a more risk-based and flexible regime for credit unions, with prudential standards that reflect the diverse business models they now operate. The new rules will raise standards where required," the central bank's deputy governor, Andrew Bailey, said.

The 50-year-old credit union movement has typically served the less well off in society but is now revamping itself to attract a wider range of customers by offering accounts, mortgages and savings products.....Read more here