A credit union which serves Monmouthshire is operating a 'business as usual' approach after a report was published last week into the performance of the credit union movement in Wales.

The Pontypool-based Gateway Credit Union has a membership base of more than 2,000 and has recently launched a new ISA.

John Richards, manager at Gateway Credit Union, said: "The recently published report into credit unions in Wales suggests that when Welsh Government funding decreases or stops towards the end of this year, a negative impact will be felt by many credit unions.

"We want to assure our members that Gateway Credit Union is a strong and safe financial institution with a long-term vision for the future.

"Our recently launched ISA is testament to the fact that we are committed to the communities that we operate in.

"Our members with substantial savings told us they wanted a competitive interest rate that they can rely on year-on-year. We hope to attract new members from across Torfaen and Monmouthshire who are looking to save while having the added benefit of helping their local community."

The law changed last year to allow Credit Unions to offer interest-bearing accounts, with Gateway being one of the first in Wales to secure permission from the Financial Services Authority (FSA) to offer a Cash ISA account.

The account is only available for Gateway Credit Union members aged over 18, with membership open to anyone who lives or works in Torfaen or Monmouthshire, or who work for certain local employers.

Bill Hudson, manager of the All Wales Credit Union Support Programme, said: "Welsh credit unions have produced some impressive results in the last two years and Gateway is no exception.

"Throughout Wales, adult membership has risen from 41,500 to 54,000 (30 per cent increase) and junior membership from 8,000 to 11,500 (44 per cent increase).

"For the period October 2010 to December 2012, Welsh credit unions also saw members saving deposits rise from £20 million to £24 million (20 per cent increase) and the amount on loan to members rise from £11.3 million to £16.5 million (46 per cent increase)."