Credit union puts pressure on Govt

Government should pass the legislation necessary for credit unions to have a Deposit Insurance Scheme.

Barbados Co-operative & Credit Union League Limited president Anderson Henry made this call yesterday during the annual general meeting at the Lloyd Erskine Sandiford Centre.

“It would be remiss of me not to use this opportunity to call on Government to pass the necessary amendments to the relevant pieces of legislation to give credit union members the same level of protection as that enjoyed by the customers of commercial banks and finance companies,” Henry said.

“Submit that our membership of 190 000 plus is no less deserving of a similar level of protection. We have been lobbying long and hard on this one.”

The scheme offers protection for depositors of a financial institution, in this case, credit union members, from losses caused by their financial institution’s inability to repay debts. At this point, it is available to commercial bank customers, but not to credit union members.

Last April, former Financial Services Commission (FSC) chief executive officer Randy Graham told the media Government had been reviewing documentation, while the FSC and Central Bank were examining the funding requirements.

Henry said there had been no further update from the authorities as to when the legislation would be passed.

Henry revealed that the league had funded a project to come up with an appropriate model to create easier access for credit unions to the scheme

Additionally, he said draft legislation was already done by consultants in the hope of expediting the process of amending the legislation.

“It is time that our efforts bear fruit,” Henry stressed.

The credit union movement is boasting of 190 000 members with assets of over $2 billion.

The league’s annual report shows it recorded a net surplus of $89 198, considered a “satisfactory outcome”. (AD)