Cooperative credit unions feel threatened by activities of microfinance companies in competition for clients. The unions are therefore calling for the speedy passage of the Credit Union Bill to enable them retain and grow members, who are increasingly shifting to other financial service providers. According to the Chairman of the Crops Research Institute (CRI) Credit Union, Michael Kofi Adu, the non-existence of a legislative instrument impedes the sector’s ability to innovate to serve the needs of members. He says the unions are losing out to microfinance and banking institutions who are enticing members with loan facilities. “Even if you’re not saving with them, they’ll still give you loan,” he observed. The Credit Unions are expected to be in same category as microfinance companies, under the second tier of the Bank of Ghana’s new licensing regime under the Non-bank Financial Institutions Act 2008, which takes effect from January 2012. Mr. Adu believes the passage of the bill will give room for the unions to be on a sound footing for competition. “Two years ago we tried to press on the government to pass the credit union bill so that we’ll be abreast with the financial institutions and operate very well but the bill is still hanging…but if the bill is passed we’ll also have the strength to mobilize people and also sell our ideas to the community and to the individuals to save with us,” he told Luv Biz Report at the 14th Annual General Meeting of the CRI-CUA in Kumasi. According to him, the low interest rates and drive for the culture of savings are factors that place credit unions in better position to compete with other financial institutions. Meanwhile, the CRI-CUA recorded over 31 percent increase in savings, share deposit and assets, while loans granted members grew from Gh¢1.31million in 2010 to Gh¢1.77million.