Community Development Finance Institutions and Credit Unions
The question
To ask the Chancellor of the Exchequer, if she will ask the Financial Conduct Authority to assess whether the mission critical neighbourhoods, as identified by the Independent Commission on Neighbourhoods, have an effective credit union or a community development finance institution providing access to affordable credit for local residents and businesses.
Answered by Lucy Rigby
The Government recognises that credit, when provided responsibly, can be crucial for people facing unexpected expenses or managing their cash flow.
The UK has a diverse landscape for credit provision to individuals and businesses, comprising traditional banks, challenger and specialist banks, and non-bank finance providers such as Community Development Finance Institutions (CDFIs).
In November, I published the Government’s Financial Inclusion Strategy, which includes a focus on how to improve access to affordable credit.
The Strategy includes a pilot scheme for small sum lending and measures to strengthen the community finance sector, including encouraging partnerships with mainstream financial firms. The Government will continue to work closely with stakeholders to deliver on the interventions.
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