Table of Contents
II. Brief history of Credit Union in Palau
III. Public Policies and Regulations
IV. Belau Community Credit Union
V. Economic & Cultural Requirements
VI. Credit Union- Best Fit
VIII. Bibliography/Further Readings
IX. End Notes
The term paper will address Belau Community Credit Union and how its influence could shape the future landscape of the financial sector of the Republic of Palau. The basis of information formed in this term paper is from my research on the subject, observations, experience, and insight into the operations of BCCU along with other resources and references, which I relied upon to explain, discuss, and present my views on the subject matter. There will be visible instances that some details would be omitted, such as real names of people involved due to personal, cultural respect, and business privacy; however, the message, lessons, and quality of information’s intact. It is necessary to understand the geographical area in order to understand better the information presented in this paper. Briefly, the Republic of Palau (Palau) is a one hundred seventy seven square mile island in the North Pacific Ocean with nearly twenty one thousand inhabitants. There are about two hundred fifty islands that make up Palau. It is part of the Micronesian island groups that comprise the western chain of the Caroline Islands. The intent of my research, discussion, and presentation about the Credit unions is simplifying the reader’s understanding of its macroeconomic contributions, influence, and its movement in Palau. Brief History of Credit Union
During my sophomore year (1987) at Eastern Oregon University, I applied for a summer intern position with Palau Government, Ministry of Commerce -Economics Department to research and study about local financial institutions and their influence on island culture and Palau economy. After I arrived on the island and began my internship, I narrowed my focus to only research and studied Credit Unions and Farming & Fishing Cooperatives. The majority of the research/term paper mirrors my research in 1987 additional updates and changes to reflect current times.1 Credit Unions began sixty years ago when Palau Island became the United States Trust Territory of Pacific Islands. It became a U.S. Protectorate based on the United Nations Trusteeship Agreement. The credit unions were favorable institutions for money exchange; promotion of commerce, and various economic activities back in the post war eras in the Pacific. Fast forward to 1987, some 33 years after the war and an initial inception of the first credit union –aptly named First Credit Union in Palau, there were a total of twenty three credit unions actively operating in nine of the sixteen states of the Republic of Palau. The nine States were Aimeliik, Kayangel, Koror, Melekeok, Ngaraard, Ngardmau, Ngerchelong, Ngchesar, and Peleliu State. A single largest credit union at the time in terms of membership and assets was Palau Administration Credit Union (“PACU”) based in Koror State whose members comprise employees of the National Government. It had a total of 1007 members with (accumulated shares) total assets of $1,800, 000.00-not accounting for 1987 inflation rate. The following credit unions were active at the time, which most of the names are in Palauan. Bedud ra Tmolch; Bungel Kelau; Kitir; Madedok; Nekken; Ngara – Cholmuul; Ngara-Chosebekakel; Ngara-Chebub; Ngara Drutem; Ngara-Semosem; Ngaraard Fishermens; Ngesechel Sils; Ngkeklau; Odesangel; Ollei & Kayangel; Osiaol; PCCA (Palau Community Action Agency); Palau Administration; Palau Constabulary; Palau Public Works; Palau Public Health; Six Star; and Talan-Bulan. They played an important role in the post war economy and the eighties when Palau Government was experiencing cash flow problems. The credit union, during this tumultuous time, gained notoriety and...
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