President of the Barbados Workers’ Union Cooperative Credit Union (BWUCCU) Dalton Medford is advising Barbadians to join the credit union movement and reap its benefits.
Medford was speaking with members of the media at the annual general meeting of the co-operative when he accused commercial banks of taking advantage of citizens.
“When you look around Barbados and see what is happening with the commercial banks in terms of how it treats poor people, in terms of paying almost next to nothing for deposits, while at the same time charging them fees for everything, I think it almost . . . criminal for them to be doing that to us,” he argued.
“When you look around Barbados and see the amount of profits that commercial banks register, somebody has to tell them that is not good enough. What they are doing to poor people is not good enough.”
Medford said the BWUCCU is seeking to increase the wealth of its members and promote growth with their services.
“We are hoping to be able to broaden the wealth of members, from members just being transactional . . . we actually want to empower people,” he said.
The BWUCCU President said membership of the credit union has increased by nine per cent between 2017 and 2018.
General Ganager Corrine Clarke also disclosed that the credit union has a low delinquency rate of 4.25.
She also said there was an increase in saving accounts over the last year, with locals looking to maximize returns on their deposits.
Following the mini-budgetary measures introduced by the Mia Mottley administration, Clarke indicated that the credit union expects members to be more cautious with borrowing.
“We anticipate this year for persons to be a bit more prudent in borrowing because of the changes that were announced in early June . . . We anticipate that the reduction in your residual income will affect your choices, but we are here to encourage our members to consolidate their positions.”
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In principle, I strongly support our credit unions, provided they continue to be well-managed, well-audited and follow the stipulations of the governing Act(s) as well as Central Bank strictures.
However, (judging from this media report) it is a li'l bit disingenuous, for Credit Unions to say that commercial banks are "doing the dog" on their customers...without mentioning anything of what the Ministry of Finance and/or (via our Central Bank) have imposed on the banks: either compelling them to hold more and more mandates "Reserves", via them to massive amounts of government paper, or using their market strong-arm to push-down the yields on Treasury Bills, and not overlooking what effect the easy loans coming for government from a friendly N.I.S. can have on the overall game of placing "surplus" funds in a small, local, market.
As for Credit Unions "graduating" to a full Commercial-bank status, there is one teeny-weeny fly in this ointment: with the OECD Bully-Boys yet holding the whip-hand influencing, if not totally mandating, which banks may maintain Correspondent Bank accounts in USA , Canada, UK, or E.U. (et al, all over God's Green earth)! No such bank will be viable unless they can deal freely in F/X, (read, all forms of import/export trade in goods and services...plus of course, that uthuh Small Matter of accepting, or issuing, Credit Cards used in trans-national transactions. Such "re-risking" tactics surely negate many a top brain from enjoying a good night's rest these days!
That, friends, is why we need friends, not enemies. OK, OKAY, someone sound forth on bitcoin..starting now....I'm going for anuthuh coffee.
What they, the banks, are doing to us, is a reaction to the policies of the last government and the stupidity of the former governor of the CBB.
I wonder what the fired former Central Bank Governor, who was part of the sell- out- party has to say about this?
By his way of thinking I assume we should all boycott supermarkets and go shop at mini-marts. You have your advantages and disadvantages in every thing.
BTW how many people do all of these CU's (and they are numerous) hire versus banks?
People have robbed banks for years but now the tables are turned, banks are now the robbers.
It starts at the top (Government). They need to re-write the existing banking regulations. Do away with usury interest rates, late fees, and over limit fees. Most major credit cards do not have an annual fee, except those offered by Barbados banks. They even charge a monthly fee to keep a savings account open. Then open up the market for Paypal, etc who do not charge astronomical wire transfer fees, or those of Western Union. Everyone says a lot of it is caused by currency exchange rates, well that's also a part of revising banking regulations. Make it a flat $2.00 BBD to $1.00 US that never changes until the BBD gets stronger.
Why are Bajans so hard ears? I've been hearing for years people advising the ordinary Joe Bloggs to go and put their few cents on the credit union but today still the on going saga.l only needed the first letter to inform me of a $10 monthly bank charge,next morning I was there to take out all that was mine.That is 9yrs now I've been doing to the banks what I did in my 11 plus with flying colours !!!
@Ian - "Our politicians allow them to do murdrous things to us."
yep, not only the banks, in all other facets of the economy.
"I think it almost . . . criminal for them to be doing that to us,” he argued."
Well the owners of the banks history does speak for itself. The credit union of itself are limited to what it can provide. I say all the time that the banks in EUROPE do not project this sort of usury on its people , only on this people. All this is a remnant for being captives 400yrs.
I have been saying it for years. Local banks are outright thieves and robbers. Our politicians allow them to do murdrous things to us. Banks are Bandits in disguise. They have no conscience and we have to stop them somehow. They take because we give and we get back nothing in return.