Minister for Health Julius Timothy is convinced that local credit unions should be regulated and supervised by the Financial Services Unit under the Ministry of Finance.
Timothy spoke on behalf of Prime Minister and Minister of Finance Roosevelt Skerrit at a ceremony to mark the official amalgamation of five credit unions recently.
The minister said that he is certain that such supervision and regulation could help prevent a nationwide financial meltdown in the event that something goes wrong in the movement.
“Hundreds of thousands of customers invest money – some of them their life savings – in the country’s credit unions. We have to protect them by ensuring that they are well supervised and well regulated. The size of the credit union movement in Dominica poses what is called systemic risk to the countries financial system, indeed to the entire country’s economy,” he stated.
“In other words, if anything unfortunate should happened to Dominica’s credit union movement, this would threaten the entire financial system of the country. It is a chance we cannot afford to take. It is a risk we should definitely seek to minimize. Opposition is to be expected from certain persons in the credit union movement but we expect that good sense will prevail and the interest of the depositors will ultimately take precedence over the short term visions of some persons in the movement,” Timothy emphasized
The minister believes that the financial woes associated with insurance companies CLICO and British American Insurance make it essential that credit unions be supervised and put under proper regulations.
He reiterated: “The credit unions need to be brought under the regulation of the countries’ ministers of finance and their Financial Services Unit (FSU). This is the arrangement that is being pursued, not only in Dominica, but throughout the Caribbean to bring the credit union movement fully under the financial services unit of the ministries of finance. This will allow for a higher level of supervision from the FSU which will have the support of the Eastern Caribbean Central Bank.”
He said that this initiative has become a Caribbean-wide program where credit unions and other cooperative societies now fall under the jurisdiction of financial services regulatory commission where the government carves out expanded roles for the regulatory body.
However, some officials in the credit union movement do not support Timothy’s stance.
In a story published on Dominica News Online last October, President of the Board of the Central Cooperative Credit Union, Clement Carty, said he is opposing the decision to place the supervision of credit unions into the care of the FSU.
Carty, who spoke at a press conference, said that the FSU does not possess the human resources necessary to undertake that responsibility.
“What has happened here is that they’ve actually moved the credit unions from the auspices of the guidance of the commissioner of cooperatives into the FSU, which is the Financial Services Unit.To be honest, when you look at the Financial Services Unit, let me be blunt about it, I do not think they are prepared and ready to deal with it because I mean, it is not properly staffed,” he said.
“And these are things I try to avoid saying but that is what the situation is…. some of them (FSU) do not understand the credit union movement, so you have to be very careful …,” Carty said.
He said that the credit unions here are locally grown and possess cultural differences from that of a banking institution.
“We cannot really take whatever legislation you put at the bank and just throw it at the credit union. That won’t work,” Carty noted.
Check out stresss relife right here you cant go worng
Agreed but isn’t the Dominica Cooperative Society League or whatever they’re called already doing that. Can someone like Akroyd? Bermingham or Clement Carty explain credit union supervision to us suoplay.
Mr Timothy is very right . We need to protect the monies of the ordinary people live savings into the credit union. We need to protect that in case of finance melt down who is goin to refund the savers thier monies? Another note , you don’t have to be a Doctor to be a minister of health. It is all about management. Some Dominica who comment here live in the past. We have to subject to change like it or not.. its is 2010
The only smart-thinking comment so far.
We need to take an example from the recent finanical crisis (of which we in the Caribbean are still feeling the harsh effects). When one institution carries weight and market share of and beyond a certain magnitude, it is then more than ever that we need to ensure it is handled in an appropriate manner. In the case of the US, the government had to bail out over-extended companies to the tune of hundreds of billions of dollars.
Another comment mentioned that new legislation should be crafted that would allow the credit unions to operate fairly in the financial industry… I thihnk that the owner of that comment must not be living or working in this country. For your information the NCCU gets the best out of both worlds. It operates as a large bank-like institution but get regulated like a small community-based co-operative.
One of the spoils of this situation is that the NCCU is able to offer rates on both its debt and credit instruments that undercut the local banks because it is not bound by certain operating costs and regional regulations. So really and truly, who is being treated unfairly?? Even with that hand up on the competition, NCCU’s rates and services aren’t the best in the industry!
Anyway, a level playground is needed and the FSU might be the best option for now.
PS – more staff is needed at the FSU; qualified and experienced individuals.
And that is My2Sense
oh spare me !!!!!!!!!!!!!!!!! mr timothy was finance minister ………..and what is his legacy?
boy! it seems like the govt paying some people to sit and monitor,comments made on D.N.O.
cause they always Know what some ministers dont know. i just dont get it.,
Timothy, go check the POOR health services we have on island PLEASE and not Credit Unions!!!!!!!!
My dear uncle Tim, please, please,please. I think that there are other avenues that needs to be cleaned up before you all should even attempt to deal with the credit unions. Supervision is good but what type eh? My gripe is that we have sat there as a nation & watch how the insurances & them rip off people over the years, then fold up and go. Now the citezens have nowhere to turn for redress. why isn’t there legislation to prevent such demise. As you said look at clico. I thought that clico was supposed to to have a secured savings with the government in the event that things go wrong which they did & now it’s a struggle for people to received there money. I think that is where we should look first. Clean up our legislation in other to protect our people from these kinda of theft, & then we can look at the credit unions which by the way, it is hard earn five dollars that started it & still has it running. And one more question about insurances, your company do sell insurance policies, right?
what happen to Co-operative Division? I’ve worked in Credit Union and I think they were doing a fine job.
all you dere giving all the state money in duty free and is credit union all you want to supervise gimme a dam break tim tim
go mind all all you business and LEAVE US ALONE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
i doh understand how mr was a minister of finance for workers then he turn health minister
Mr Timothy as a former President of the old RCCU you should know better. The FSU lacks the manpower to supervise anyone. What you should be looking at is to enact modern legislation to replace the old Co-Operatives Societies Act. That would help the CUs in D/ca to compete fairly with the banks. And put the CUs back under the supervision of the Commissioner of Co-Operatives.
Tim Tim bra sech, is joke u joking man. Now government is appointed by the people, to do what the peole cannot do. Now the people are managing their money very well without you. So leave our Credit union alone.
No govelment interference there. Just go manage the chinese and de road building and the new hospitals, and the criminals, leave what is working alone.
The only institution that is not falling apart. Reason it is managed by the people, for the people.
Maybe the government should learn about that form of people democracy.
Leave our credit union and money alone.
The last bastion of the pauvre malaway.
them belly full yet they hungry!
Leave the credit unions alone. They are doing just fine without you.
So Timothy and Skerrit doe drink enough of our money through tax and all other sorts……………….they want to supervise our little savings too………………..Magwe Sa!
Tim TIM IS HEALTH NOT WEALTH YOU IN!!!
tell timothy behave his self,,,,the credit unions are well managed,,,these guys just want a large slice of the malaway cake,,,,b4 when u saved at credit unions people use to laugh at u,,,,stereotypical fools,,,,now the credit unions are the strongest financial body around the caribbean and the world,,,they are already being supervised by the commissioner of co-operatives and other bodies,,,they do keep in bounds of certain financial obligations,,,,i remember some years back they wanted the r.c.c.u to be handled by gov’t as it n.b.d wasn’t enough,,,,see how A.I.D bank sinking,,,allu want to sink our own too,,,no way sah
So allu can contrul our money… NO way… they report to us the members, you do not need to interfere in OUR business, we like how its being managed.