Credit unions in for the long haul

Message to mark International Credit Union Day 2022 from Hally Haynes, President of the Barbados Co-operative & Credit Union League.

At a time when the world is facing a cost of living crisis, increasing worries about an escalating war in Ukraine, and the pall of a looming global economic slowdown, credit unionists across the world have adopted a most appropriate theme to celebrate International Credit Union (ICU) Day 2022 on October 20.

“Empower Your Financial Future with a Credit Union”, succinctly captures the spirit of this movement and the protective mechanism it has become for so many people. This is especially so when individuals and communities are searching, not simply for symbols of stability, but tangible examples of such.

People desire surefootedness during seasons of abundance, and even more so, during periods of adversity. They have found this in our movement which is celebrating 75 years of existence in Barbados.

From the very humble beginnings of the Shamrock Credit Union in 1947, credit unions have emerged as a bulwark to a financial infrastructure that in many respects, was not designed for, and tended to exclude those at the bottom of the economic ladder.

The credit union’s formation represented a monumental shift and coincided too with a period of mobilisation and actualisation by working class Barbadians.

We at the Barbados Co-operative & Credit Union League (BCCUL) are immensely proud of the role credit unions have played in support of the development of Barbados and its citizens.

During last the two-and-a-half years of the COVID-19 pandemic, for example, credit unions demonstrated core responsiveness to the needs of members at a time when sharp job losses reached historic levels and allowed most members to emerge from this particularly difficult period.

As a critical layer in the local financial space, we are also responding to an ever evolving regulatory and standards framework to ensure that we continue to be reliable and enduring financial players.

The recently released 2021 Financial Stability Report from the Central Bank of Barbados (CBB) and the Financial Services Commission (FSC) outlined the credit unions’ adoption of the IFRS 9  standard for loss provisioning.

The total assets of the sector grew by 5.3 per cent as at December 31, 2021, to $2.94 billion despite the economic challenges, as gross loans increased by $80 million to reach $1.87 billion.

Members also continued to show support and loyalty in the sector with increased deposits during the year. Our total income increased by $8 million at the end of 2021, reflecting a slight recovery on previously declining loan and investment income.

Amidst these positive highlights, the BCCUL continues to push for the inclusion of credit unions in the national deposit insurance scheme. At the same time, we are ensuring all affiliate members are readied for minimum industry standards to access the facilities of Barbados Deposit Insurance Corporation when the legislation is amended.

We are also encouraged by the significant strides our affiliates have made to strengthen their governance and compliance structures. The movement is expending significant sums to onboard key personnel with the necessary skills and experience and introducing systems for management of anti-money laundering processes and to reduce risks.

In this connection, the BCCUL and its affiliates remain committed to ensuring that we are not viewed as a weak link in the national strategy to have Barbados removed from all adverse lists of global regulatory authorities such as the Financial Action Task Force or the Organisation for Economic Cooperation and Development (OECD).

As we celebrate ICU 2022, we are pleased to play our part in securing the financial future of the more than 231, 000 credit
union members in Barbados. Happy ICU 2022!