The future of the co-operative credit union centred on the Queensland hinterland town of Maleny is up for review, with the board of MCU Limited leaning toward joining the Alliance banks network operating under the wing of Bendigo and Adelaide Bank.A proposal for members to fold the former Maleny Credit Union into the Alliance Bank model is forthcoming from the board of MCU, or so goes the talk around the mutual ADI sector.In an email to Banking Day, MCU chief executive Bob Malcolm addressed our query about a merger obliquely.  "Our board formally reviews strategy on a regular basis. If, at some point, the board decides to consider an alternative business model, a proposal will be presented to the members and their feedback will be included in any further development," he said. Some form of member consultation - in a town famed for its network of vigorous cooperatives - is anticipated soon.The independently-minded owners of the credit union in 2011 spurned a board plan to merge with Credit Union Australia, a rare instance of a merger being rejected in a member vote.MCU is at the smaller end of the scale of Australia's credit unions with A$46 million in assets and $4 million in net assets at the end of December 2015.The credit union incurred a loss of $40,000 over the half year to December 2015. It reported a profit of $104,000 over the year to June 2015.In a report to members the board described the "2016 financial year to date as an exceptionally difficult one for the credit union with continuing low interest margins and significant changes to the management team including a new CEO. "The result of these changes and a discount loan offer (finished September 2015) have resulted in an operating loss for the half year. In light of these circumstances the board decided to defer the mid-year dividend payment on the Member Investment Shares."The annual report for 2015 emphasised cost strains, with a six per cent rise in staff costs and "increasing banking transaction fees and regulatory costs."Four credit unions have so far amalgamated with Bendigo and Adelaide Bank under the Alliance Bank model established in early 2015.