MANCHESTER, U.K. – In the U.S. banks and credit unions fighteach other on every battle ground imaginable. In the United Kingdombanks help credit unions. It is not an isolated phenomena to asingle bank or region. Credit unions are not seen as competition tobanks. Until 2001 credit unions were so limited in the size and thetype of accounts that they could offer that they were consideredonly for poor people. Now that many restrictions have been lifted,credit unions are still being seen as poor people banks, although anumber of credit unions such as Southwark and Leeds City haveexpanded their common bond to take in everyone in a geographicalarea and are growing rapidly. These new and larger credit unionsare used by the middle classes as well as the poor. Banks take onspecific credit union projects with a variety of goals. Someexamples include: Sefton Credit Union in Liverpool uses officefurniture and computers given to them by Alliance & Leicester.The bank started as a benefit society in 1862 and is based inLeicester. It showed a 263 (US$461) million operating profit as ofJune 2005. The bank is also working with several local groups toestablish a new credit union in Leicester. Working with theScottish Council of Voluntary Organizations, the Bank of Scotlandis helping the North Edinburgh Credit Union to prepare business andmarketing plans. They have contributed 100,000 (US$175,000) to thepossibility of establishing a credit union for all of the city ofEdinburgh. They are also examining the reduction of their pricingto credit unions. The Bank of Scotland and Clydesdale developed a“Credit Union Health Check” pilot program to make sure creditunions could become sustainable. Another bank offering free bankingtransactions to community credit unions is Lloyds TSB. Theydedicated part of their Web site to people thinking of starting acredit union. They have offered reduce rent to the CardiffCommunity Credit Union, sponsored 10 scholarships for apost-graduate Certificate in Co-operative Management andOrganizational Development for credit union people at LeicesterUniversity, and spent about 13,000 (US$22,800) to train creditunion volunteers. NatWest, part of the Royal Bank of Scotland Grouphas talked with the Birmingham Credit Union Development Agency toestablish a pilot back office system for the credit union. It hasalso sponsored research studies about the credit union developmentas well as providing free banking to 21 community credit unions.The Northern Rock Foundation of Newcastle on Tyne, which is totallysponsored by Northern Rock Bank, gave 22,000 ($US38,500) to theJarrow Credit Union to be used for computers and administrativesupport. Bank support is becoming engrained in the development ofthe British credit union movement, but as credit unions grow no oneknows if the help will turn to [email protected]