Credit Unions Must Deposit With Banks According to the Law

Hally Haynes, president of the Barbados cooperative Credit Union League

Hally Haynes, president of the Barbados Co-operative Credit Union League

The issue which has erupted about whether credit unions have been directed by the  Financial Services Commission (FSC) to shift deposits held with non banks to commercial banks continues to gain momentum. The President of the Barbados Economic Society Ryan Straughn added his voice today. The unravelling saga has raised several issues which should concern Barbadians whether members of the credit unions or not.

The Barbados Co-operative and Credit Union League (BCCUL) is the umbrella body of credit unions in Barbados and should be the only entity making statements on the matter.  The matter which is playing out in the media makes it seem that it is a City of Bridgetown and Financial Services Commission affair.  Of concern to many is the statement issued by the BCCUL which was reported in the Barbados Today “…further, the Barbados Co-operative & Credit Union League Ltd., the apex body for credit unions and co-operatives in Barbados, totally rejects the notion of any ongoing row between the FSC and credit unions on this or any other issue. The pertinent facts surrounding the issue are as summarised below”.

For anyone to suggest that the FSC has issued a directive to force credit unions to transfer all deposits held with non bank institutions to banks in order to force a take up of government treasuries is speculative at this stage. BU is willing to be proved wrong. Further, BU has had a look at the Co-operative Societies Act Section 34A and the law supports the fact that credit unions must be placed funds with banks or other credit unions regulated by the Act.

What it says to BU is that we should be also asking why under the old dispensation credit unions were allowed to contravene the Act. We have been critical of the Office of the Supervisor and its weak supervision of CLICO Insurance Ltd. Should we be similarly critical of the former Registrar of Cooperatives?

Here is what the Act states:

34A. (1) The funds of a society, including the reserve, may
(a) be deposited in
(i) a bank licensed under the Financial Institutions Act;
(ii) a society registered under this Act; or
(b) be invested in
(i) securities issued by the Government of Barbados;
(ii) securities, the payment of interest on which is guaranteed
by the Government of Barbados;
(iii) subject to subsection (2), securities issued in Barbados
by a company incorporated in Barbados and listed by the
Barbados Stock Exchange, if the company has paid a
dividend on its shares for the preceding 5 consecutive
years;
(iv) subject to subsection (2), securities issued in a member
state of the Caribbean Community by a company
incorporated in that member state and listed by the Stock
Exchange of a member state of the Community, if the
company has paid a dividend on its shares for the
preceding 5 consecutive years;

Co-operative Societies Act

0 responses to “Credit Unions Must Deposit With Banks According to the Law

  1. Well Well.

    Personally, i know there are very few attorneys who can be trusted in Bim, the ones doing corporate law would be handling such transactions and in a case like this, everyone has to be suspect unless or until they prove otherwise……….this is a lot of money to be playing fast and loose with, and as i said earlier the credit union members have to be extremely vigilant, it is now we will get to witness the kind of stuff the present PM is made of, being an optimist, i am willing to give him the benefit of the doubt and say he will make sure that the union members money is well protected and kept within the black community, if he so much as blinks and allow the minority or anyone else in the country to leech off these poor people and enrich themselves while still denigrating the majority in the country, i will be one of those up front in making sure he never forgets its.

  2. Bruddah-Bim

    @ Well Well
    If the PM doesn’t do as he is supposed to (which is to protect the nation at all costs); then ALL BAJANS SHOULD REVOLT IN OPPOSITION TO THIS SHAM OF A “DEMOCRACY”! I WOULD CALL FOR A REVOLUTION TO THROW OUT ALL THE CORRUPT POLITICIANS!

  3. PLANTATION DEEDS FROM 1926-2013 AND SEE MASSIVE FRAUD ,LAND TAX BILLS AND NO DEEDS

    Bruddah-Bim@ that is the road them crooks going on , 1937 about dam time the crooks move or get push out of office ,

  4. PLANTATION DEEDS FROM 1926-2013 AND SEE MASSIVE FRAUD ,LAND TAX BILLS AND NO DEEDS

    Well Well @ A run on the Banks and the credit unions next , The we will see whats in the accounts , as you can see PONZI is on paper statements , and nothing in the bank , for they all out spending your FUNDS having FUN.-D .. well above their pay grade.
    I took all my money out long time from banks , I dont even have an account with over 25 bds in it , I have more in my pocket , Nice and safe.

  5. Well Well.

    Plantation……….people need to seriously start considering alternatives.

  6. PLANTATION DEEDS FROM 1926-2013 AND SEE MASSIVE FRAUD ,LAND TAX BILLS AND NO DEEDS

    Well Well @ if they would watch money master on You tube , its about 3 hours long . They would do some thing better with this so called money. We bought Silver at 4 US a BAR in the 90s now its more, . Gold also on hold in smaller amounts. Printing on 65%linen and 35% cotton and they call it paper. Buy Silver in hand and not in stocks..999 or .9999 Silver. Only One God , but many GODs and gods.

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