At the sharp end of the credit crisis: A profile of Valleys Credit Union

The near-collapse of the country’s largest financial institutions and the forced nationalisation of two major high-street banks raise concerns about the ability of smaller financial institutions to survive. In this article we assess the performance of a credit union in the South Wales Valleys in the context of the financial crisis. We offer a profile of Valleys Credit Union and provide statistics to assess its financial health and viability. We conclude that, while the credit union has ridden out the storm with considerable skill, it and other credit unions require continued political support,especially in terms of intervention in the market for instant loans with excessive rates of interest.