United Workers Party (UWP) Senator, Dr. Thomson Fontaine has raised concerns over a new Banking Act, which was passed in parliament on Thursday evening.
He made his contribution when the Bill for the Act was being debated in parliament.
He said one of his major concerns was the issue of Credit Unions.
“An immediate concern to me is the whole issue of the Credit Unions,” he said. “We are told that the credit unions will not be regulated. Now that is really an important concern to me here in Dominica in particular, because the role that Credit Unions play within the financial institutions here in Dominica is not the same role that they play in other countries within the OECS.”
He continued, “The Credit Union here is the second largest in terms of assets after the National Bank, so it seems to me if as the Prime Minister indicated that this Bill is intended to look at the interest of depositors, that a significant number of depositors would be with the Credit Unions.”
Fontaine said if the Credit Unions are not part of the new scenario then questions remain.
“What kind of coverage are you offering to those who are operating within that space and if they are given, why is it not more clearly and stated within the Act?” he queried.
He further stated that the legislation is not clear enough as to whether or not a banking license can be issued to one individual which, he said, is very important.
“In most jurisdictions around the globe, it is clearly stated that they can only issue a license to an entity, not an individual and that again is not clearly stated with regards to who can receive license,” Dr. Fontaine explained.
Another concern he raised had to do with Section 50 of the Act, which has to do with borrowing.
“I was concerned that not enough emphasis was placed, nothing was actually stated explicitly in regards to exposure to government, because we know that in some of our jurisdiction governments, sometimes have the tendency to borrow excessively or borrow large amounts from especially the national banks,” he said. “And I would think that in such critical legislation that there would have been some cap in place on the level of government borrowing…. that I would like to see better addressed.”
Meantime Opposition Leader, Lennox Linton, said his favourite part of the Act is Part 8 which focuses on corporate governance.
“It underlines the need for the banking business to be in the hands of fit and proper persons as determined by the Eastern Caribbean Central Bank, the regulator of the ECCU Banking space,” he stated. “The Prime Minister has advised us that it was the decision of the finance ministers of the Monetary Council to fully transfer of authority for licensing, for regulation and supervision of the banking space in the ECCU to the Eastern Caribbean Central Bank and that matters like the granting and the revocation of licenses which were previously handle by the finance ministers of the region will now be the exclusive preserve of the Eastern Caribbean Central Bank.”
He described that section of the Act as “huge.”
“It is huge because we are moving from finance ministers to the Eastern Caribbean Central Bank for the overall management and custodial responsibility for the banking space in the Eastern Caribbean Currency Union,” he said.
The new Banking Act replaces Dominica’s Banking Act No.16 of 2005. It is being implemented in all eight members of the Eastern Caribbean Currency Union. It intends to create stability within the regional banking system.
Dr Fontaine and honourable, both seem to have a more profound understanding of this new banking act than Skerrit, whose thinking and mindset continues to be getting shallower.
isn’t that the same act that employees and bank in Antigua protested against?
It was high time the UWP got off their lazy behind and said something sensible, what Mr. Fountain said here is called constructive criticism, more of this and Dominicans might start to see he and his party as a sensible and serious opposition.
What is the.E.C.S.E. trending this month can some one tell me please. How many Dominicans going to buy shares in the power company.
CONGRATULATIONS Dr Fontaine! Respect due to you Brother!
Who have ears to hear let them hear And who have eyes to see let them see! In Due Time, We Will Look and See the reward of the wicked. Then again the way some staff on this site operate,who knows if this comment will be Posted? So that you may know WHO MAKES Possible For The WORK Required never to be in vain. TRUTH cannot be lost, nor changed!
DNO you miss the part where Joshua contradicted Lennox by saying the ECCB is given too much authority!!!!! Get the clip and add it it’s very important….
This is a very good point about Credit Unions and deserves further investigation. Credit Union interest rates and member benefits are enough to attract a torrent of economic citizens.
I was so appalled that such an important piece of legislation and the opposition dominated the presentation and i think clarified and contributed significantly, whilst the government officials could not put together a simple sentence far less to make any significant contribution. The members that have been in parliament for 20 years could not contribute to this bill whilst they was denigrating and insulting people just a mere twelve hours before.
I am ashamed at the caliber of persons that forms part of this government and skeritt better get competent persons if he truly wants to move this country forward. I have never seen a set of incompetent persons like them fellas that cannot string two sentences together. I am equally appalled at the persons who see it fit to elect these people, certainly we can do better than that.
No wonder the people from Roseau had to send such a strong message on election day and the labour party is still not taking note
If you are using THEIR MONEY then they have you. The PM was just the messenger from the bankers. Mr. Fontaine you should be very familiar to the subject having worked for the UN (controlled by the bankers).
Dr Fontaine worked for the International Monetary Fund, not the United Nations.
DNO good report but we want a little bit more – because listening to the news I heard the PM say that the Opposition had nothing to say about the bill; I heard the opposition leader speak to the issue of Holding Companies on Q95 it is my wish to hear more – so if get can get an interview or excepts from the debate relating to his concerns that would very good – because he claimed that he was not allowed to continue by the speaker. By the way I have not seen any reports or news items on DNO as it relates to the alleged holding company in Malaysia – what is it called again….My Dominica somthin something ….I am wondering, DNO is story not worth reporting or INVESTIGATING , EMMMMMMH!!!!!
Thank you Dr. Fontaine, this is the type of questioning that Dominicans need to hear and debate. Its so sad, listening to the first day of parliament, so much “nonsense” speech and mepuis that one could hardly get to focus on the real meat of the issues presented.
Is it too much to ask that we save the political mudslinging for the talk shows, and come to parliament with professional demeanor and conduct?!