Five representatives from Iowa credit unions recently visited Panama to help the underdeveloped nation strengthen its credit union system.

The trip, organized by the World Council of Credit Unions, was the first face-to-face meeting related to a newly formed partnership between credit union professionals in Iowa and the Central American country. According to Murray Williams, director of public affairs for the Iowa Credit Union League, through the relationship, Iowans will provide technical assistance to help leaders of the Panamanian credit union movement develop a more structured regulatory system.

“Panama has a strong foundation for credit unions, but they are finding a need for more structure to their system,” Murray said. “It’s almost the opposite of in the United States, where you hear grumbling about too much regulation.”

During the Aug. 28-Sept. 1 visit, the Iowa delegation met with the staff of the Panamanian credit union trade organization, conducted a half-day education session with approximately 100 Panamanian credit union representatives and visited credit unions of various sizes.

Murray said the government structure in Panama has created challenges for its credit union movement because the industry is so loosely regulated. In that country, credit unions are classified as a cooperative, and a regulator who oversees various cooperatives also handles credit unions. By contrast, credit unions in Iowa have their own division in state government.

“The credit unions there, in general, don’t get involved in the political process,” Williams said. “They don’t try to advocate or lobby for their own interests, and therefore, don’t really have a say as to how they’re regulated from a government perspective.”

Murray said a contingent from Panama is planning to travel to Iowa next spring to learn more about our state’s credit union system, and the two groups hope to organize Web seminars for further education.

“This is going to be an evolution for them,” Murray said. “Change is not going to happen overnight, but we feel that we can help guide them to where they want to be.”

The Iowa delegation to Panama included Williams, Patrick Jury and Jan Dietzenback from the Iowa Credit Union League, Patrick Drennen from 1st Gateway Credit Union in Camanche, and Mark Killian from Community Business Lenders.