Submitted by Old Onions Bag
Latest move by Government through a directive coming from the Financial Services Commission (FSC), to curtail the credit unions as to where they can invest, has stirred up a hornets nest. Now investing for them is all but limited to commercial banks and government paper. Really now, how much money can be made with commercial banks, 2 % or 5% on fixed deposits if you are lucky? Can be liken to operating in a piggy bank environment, risk aversive for sure, but at what loss of possible profits?. All that’s left is government bonds and paper instruments. Such directives most probably have been influenced by the Clico paviova, and a protectionist policy for investors, but could there be more, given that commercial banks’ interest in government bonds and instruments have declined considerably.
So why must the credit unions always play whipping boy with obvious mollycoddle ? Must these institutions (peoples money) be always corralled to suit others agendas all the time? Why can’t the credit unions be allowed to grow as with most financial institutions, for one, like allowing them their own bank? Surely we could venture a guess, that commercial banks would see an exodus of the ‘peoples deposits’ to where, policies and interest rates and sharing of profits would be much more fertile.
Credit unions you are being served notice….bail bonders extraordinaire‘….