Government to table deposit insurance legislation for credit unions

Barbados’ credit union sector is on the verge of securing a long-sought protection for members’ savings, with legislation to establish deposit insurance expected to be tabled in parliament within days.

The announcement came from President of the Barbados Cooperative and Credit Union League Kemar Cumberbatch during the opening ceremony of the Caribbean Confederation of Credit Unions (CCCU) Annual Conference at the Wyndham Grand Sam Lord’s Castle on Saturday.

Cumberbatch described the move as a historic breakthrough for a sector that has spent more than a decade advocating for stronger safeguards for its members.

“Since we last gathered, the global financial landscape has transformed completely, yet our core philosophy remains unshakeable: people helping people,” he told delegates, while thanking government officials, regulators and regional partners for their support.

Highlighting the sector’s contribution to the economy, Cumberbatch said Barbados’ credit unions now manage assets exceeding US$1.7 billion and remain a critical pillar of financial inclusion.

However, he said the most significant development was the impending introduction of deposit insurance legislation.

“I have been advised by the highest possible authority that in just a few short days, the Government of Barbados will officially lay legislation in the House of Assembly with respect to the passage of deposit insurance for the credit union movement,” he announced.

Calling it a “monumental victory”, Cumberbatch said the measure represented the culmination of more than 15 years of advocacy by the movement.

He added that the sector’s focus would now shift to securing credit union-specific legislation to further strengthen and modernise the industry.

Meanwhile, Minister of Finance Ryan Straughn urged credit unions across the Caribbean to deepen regional cooperation and invest more heavily in solutions that keep wealth within the region.

He pointed to the large volume of insurance premiums flowing overseas each year, arguing that Caribbean institutions should be better positioned to retain and reinvest those funds.

“Every year all of us send insurance premiums outside of the region from our members and citizens, yet the claims that are actually responding are less than a third of those premiums,” Straughn said. “There’s no good reason for that.”

The minister said the cooperative model remained one of the most effective tools for building generational wealth and creating opportunities for young people throughout the Caribbean.

“This is the model that will help save our people. This is the model that will help generate wealth that will move from one generation to the next,” he said.

While acknowledging the challenges faced by small states, Straughn argued that the region possesses the resources, technology and expertise necessary to drive meaningful change.

“We want credit unions to do more in Barbados and certainly do more across the region,” he said. “Creating the right ecosystem and allowing credit unions to take charge and chart the destiny of our people will be transformational if the Caribbean is to become more resilient.”