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

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106 Comments on “Credit Unions Must Deposit With Banks According to the Law”

  1. Bush Tea May 29, 2013 at 9:30 PM #

    @ Well Well
    …are you aware of the option to keep quiet about things you know nothing about? Steupssss
    …Wuh you is ac now?

    Like

  2. Well Well. May 29, 2013 at 9:34 PM #

    Bushy……………..I am asking questions, do you mind? you are free to return to you scintillating talk on gays, no one is stopping you.

    Like

  3. Well Well. May 29, 2013 at 9:38 PM #

    Bushy, before you go back to your gay talk, without giving you too many details, I worked at one of the biggest conglomerate banks in the world, thing is, the caribbean banking system sounds like it’s very different in some ways and as you don’t mind poor people losing 1 billion dollars to thieves as long as you can talk gay, there are those of us who actually care about these people being able to enjoy their money, remember the likes of parris, cow, simpson et al are still around and lurking.

    Like

  4. Bruddah-Bim May 29, 2013 at 9:41 PM #

    @ Well-Well
    INDEED WELL-WELL they should. You really are a critical thinker!!! I truly am impressed with your logic!!! It brings me hope!!! Your enthusiasm has given me an idea as to how Barbados can further solidify it’s growth and uplift Bajans from the fringes of poverty!

    Like

  5. Bruddah-Bim May 29, 2013 at 9:42 PM #

    @ Well-Well

    And I find your side comments to Bushie Hilariously TRUTHFUL!!

    Like

  6. Bush Tea May 29, 2013 at 9:44 PM #

    Perhaps, to keep it short, you should tell us the name of a few places where you HAVE NOT worked….! Or things that you have not done….

    So are you saying that you ARE aware that you need not comment on every thread all day and night?

    Like

  7. islandgal246 May 29, 2013 at 9:49 PM #

    Bushie ….Well Well suffers from insomnia and is also an ” i ” specialist. I have done this , I have done that, I know it all etc. LOLL She is also known a motor mouth!

    Like

  8. Well Well. May 29, 2013 at 9:56 PM #

    Bushie and island………………i know what you two are specialists at and it’s talking about gays day and night, in the real world of North America, we do not have that leisure or time to speak about people’s bedroom business incessantly, we have to work and that work takes us to multiple places where we acquire multiple skills to use in an ever changing world, i quite understand that the only skills you two have are talking about other people’s sex life all day and most of the night, it even affects your work place life, that is island life, not so in the real world. So, having minded my own business for so many years and focused on acquiring usable and marketable skills, i have specialized, what do you think you two will specialize in if you have to leave Barbados? maybe talking about people’s sex lives, you would get killed.

    Like

  9. Well Well. May 29, 2013 at 9:59 PM #

    Bruddah…………if only the likes of Island and Bushy had an idea to offer on how to make a difference and stop the decay in barabdos, they do not know it but they are wasting their talents………………i am sure they will understand what i am saying when they turn 80 and are still talking about gays, who will more than likely be the people running the world.

    Like

  10. Bruddah-Bim May 29, 2013 at 10:01 PM #

    @ Well Well
    LOL. Likewise.
    don’t forget that the gays could also be writing their pay cheques to their ignorance and dismay…. ROFL. A funny row indeed.!

    Like

  11. Well Well. May 29, 2013 at 10:09 PM #

    So you see bushy and island……….it’s not about me or where i have worked or how much time i have to contribute on every thread, you are missing the point, it’s what i have to contribute without noticing or caring who else is contributing as long as they are contributing something useful and intelligent. Just let me know when you two have earned enough money to purchase the world wide web, then i will know my use of it will be limited, until then try and contribute something other than somebodies sex life bothers you.

    Like

  12. Well Well. May 29, 2013 at 10:11 PM #

    Bruddah………..these people are the most socially ignorant animals i have come across in a very long time, they are clueless as to what is happening in the real world as long as they can throw little knives and digs at each other, and the crab hole seems to be getting smaller.

    Like

  13. Bruddah-Bim May 29, 2013 at 10:14 PM #

    @ Well Well
    “… the crab hole seems to be getting smaller…”

    While the number of crabs is EXPLODING. Not a good concoction at ALL!

    Like

  14. Well Well. May 29, 2013 at 10:17 PM #

    Bruddah……….good for them, who is not watching other people’s sex lives will survive. Before we were so rudely interrupted by bushy and islandgal the gay talkers…………..i was asking you if the credit union members are not allowed to vote yah or nay in any sales of assets even by proxy, are they are not?

    Like

  15. Bruddah-Bim May 29, 2013 at 10:18 PM #

    @ Well Well
    And as stated previously (prior to the disruption), I whole heartedly agree with the option of member voting.

    Like

  16. Well Well. May 29, 2013 at 10:23 PM #

    Bruddah………………the credit union bosses, in my thinking could have the documents drawn up to reflect that all powers lie with the members as it relates to any sales of assets, i don’t see the government then having any power to roll in and sell off assets, particularly if they do not have any controlling shares.

    Like

  17. Bruddah-Bim May 29, 2013 at 11:30 PM #

    @ Well Well

    What does that spell in your opinion then?

    Like

  18. David May 30, 2013 at 5:18 AM #

    Why are we taking the conversation off track? To set up a bank requires approval from the government. It is what the BCCUL is currently pursuing. Go to the BCCUL website and look at the assets of credit unions in Barbados. If you subtract Public Workers, COB and a couple others what is left? The credit unions have grown but it does not mean they have cash to capitalise anything. Credit Unions by their philosophy are highly lent.

    Like

  19. Well Well. May 30, 2013 at 9:38 AM #

    David………………i am not on the ground in Bim so i don’t know who is pursuing what, that’s why i ask so many questions. I don’t know what you think about the matter, but would it not be wiser for the unions to have their own bank rather than transferring funds over to foreign owned banks? I was reading this morning about the “blacklisting’ of Trinidad by France, the French government is denying it saying the entity who put them on this list is kinda, sorta, maybe not quite following government procedures but doing their own thing, but government can’t stop them because they kinda, sorta, maybe don’t have the power to, i am saying that because it all relates to foreign entities dictating procedures for banks worldwide………..is it not better for credit union members to be owners of their bank?

    Like

  20. Well Well. May 30, 2013 at 9:42 AM #

    Bruddah……………As I just told David, as i am not on the ground in Bim I don’t know exactly what or who is involved and definitely don’t know their true intentions, we have to know the dynamics that are currently in play and who stands to gain or lose………..all i can say is i hope it’s not the members of the credit union who have their cash deposited there.

    Like

  21. David May 30, 2013 at 9:46 AM #

    @Well Well

    It is public knowledge (google it) that the BCCUL has contracted Sir Courtney to prepare a prelim study of the feasibility of seeking approval to launch a bank. Of interest is that COB has voiced concern about credit unions going this route.

    The issue here is credit unions forced to deposit excess funds with banks. Even if they own a bank they will still be forced to deposit with other financial institution to mitigate risk.

    Like

  22. Well Well. May 30, 2013 at 10:02 AM #

    David………….i see, spread it around in their opinion lowers the risk factor.

    Like

  23. Bruddah-Bim May 30, 2013 at 4:55 PM #

    @ David (B.U.)
    “It is public knowledge (google it) that the BCCUL has contracted Sir Courtney to prepare a prelim study of the feasibility of seeking approval to launch a bank. Of interest is that COB has voiced concern about credit unions going this root.”

    If what you say is indeed true, then BAJANS should be taking to the streets. Credit Unions are meant FOR THE PEOPLE. TO force credit unions to “Deposit” excess funds into a Private Bank is beyond RECKLESS; IT IS STUPPID AND IS A DIRECT THEFT FROM THE PUBLIC! We need to Educate Bajans about the implications of this!!!!

    Like

  24. Well Well. May 30, 2013 at 5:05 PM #

    Bruddah…………i was trying to gather more information on this before i said anything, banking laws can be pretty complex and i know of mergers and acquisitions or hostile take overs, but i have never heard of moving money from one entity into the banking system without any apparent protection mechanisms in place, it seems suspect to me, but again, the finance laws are always subject to different interpretations…………the lawyers should know best.

    Like

  25. Bruddah-Bim May 30, 2013 at 5:07 PM #

    @ Well-Well
    Then the question we should ask is “Who is funding the attorneys? And to what interest?”

    Like

  26. Well Well. May 30, 2013 at 5:22 PM #

    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.

    Like

  27. Bruddah-Bim May 30, 2013 at 6:01 PM #

    @ 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!

    Like

  28. PLANTATION DEEDS FROM 1926-2013 AND SEE MASSIVE FRAUD ,LAND TAX BILLS AND NO DEEDS May 31, 2013 at 9:30 PM #

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

    Like

  29. PLANTATION DEEDS FROM 1926-2013 AND SEE MASSIVE FRAUD ,LAND TAX BILLS AND NO DEEDS May 31, 2013 at 9:35 PM #

    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.

    Like

  30. Well Well. May 31, 2013 at 9:59 PM #

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

    Like

  31. PLANTATION DEEDS FROM 1926-2013 AND SEE MASSIVE FRAUD ,LAND TAX BILLS AND NO DEEDS June 1, 2013 at 6:52 AM #

    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.

    Like

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