WITH COMMERCIAL BANKS offering very little in interest payments to savers, Barbadians have so far pumped about $1.7 billion of their savings into credit unions.
However, the move has created a catch-22 situation for credit unions. While they welcome the rising savings, the cash influx is becoming a ballooning expense as the 183 000 members expect a better return.
In the 2016 Financial Stability Report produced by the Financial Services Commission (FSC) and the Central Bank of Barbados, credit union membership increased by 3.4 per cent over 2015, while the assets of the 34-member strong movement stood at $2 billion.
Examining the period September 2015 to September 2016, the report outlined: “Members’ savings, which comprise both members’ deposits and shares, increased by 9.5 per cent to reach $1 708.1 million at the end of September 2016. During the review period, regular deposits increased by 8.8 per cent, while term deposits grew by 16.4 per cent.” (GE)
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