Credit Union League strengthened by H.R.C.U.’s return
Credit Unions may be known as the poor man’s bank, but when you add up their collective resources they are a major factor in Belize’s economy … and that influence is likely to grow.
Jacqueline Godwin, Reporting
Today, the Belize Credit Union League has reason to celebrate, because after almost two decades the country’s largest credit union is once again under the organisation’s umbrella.
Natalie Goff, Executive Dir., Belize Credit Union League
“So it was the eleven smaller credit unions that were keeping the league afloat for about twenty years, and so that affected the strength of the league. However, we are happy to announce that as of June this year, the biggest credit union in Belize, Holy Redeemer Credit Union has rejoined the league with its thirty-eight thousand members and over two hundred and seventy million dollars in assets, so that will help to strengthen the league tremendously over the next year or so.”
The Belize Credit Union League is hoping that by this time next year, the second largest credit union, St. Francis Xavier will also become a member.
Jacqueline Godwin
“Any reason why they were not members of the League?”
Natalie Goff
“Jackie, I really do not know. We hear all types of reasons, but we are not dealing with that now, we are looking into the future. And as a League, we have to see how we can serve a credit union like H.R.C.U., who really does not need the league, they can work and operate on their own without the league, but I think together, there is a lot we can do for the credit union movement in Belize.”
According to the Governor of the Central Bank Sydney Campbell, more than ninety percent of the thirteen credit unions in Belize are performing adequately. Although credit unions largely operate on their own without government intervention, it was probably the major scandal in 2001 in which a half a million dollars was embezzled from the Mount Carmel Credit Union that prompted government to give the Central Bank the responsibility to supervise credit unions just like it does with commercial banks.
Sydney Campbell, Governor, Central Bank of Belize
“We get from the credit union what we call offsite inspection, meaning they submit to us periodically, monthly, quarterly, annually reports on the operation of the credit union. And then as we so determine, we go in and do what we call onsite examination to ensure that what the credit unions are reporting is indeed their financial activities within the credit union.”
Meanwhile, the Caribbean Confederation of Credit Unions, which is the regional body for credit unions, suspects that in the next decade there will be a reduction of the number of credit unions in the region as these financial institutions merge to become more viable and effective for the people they serve.
Christopher Samuda, President, CCU
“I am sure that in the next ten, fifteen years the number of credit unions in the region will significantly reduce. And there are other factors for that as well, we have to effect economies of scale and by coming together we will be able to serve our members much better with the products and services that we have to offer. So in the next ten to fifteen years I expect to see a significant reduction of credit unions.”
“We have produced several papers and we have offered guidance to the movement as to how seamlessly you can merge and amalgamate without of course putting the credit union at risk and your members”
Natalie Goff
“We have not addressed the issue of merger as a movement, but it is something that we will have to look at soon, I would say in the next six months or so. There are a couple smaller credits unions that are reluctant to merger, but I think we have to face reality and unless they can provide the service that is needed to the members, because it is the members who come first.”
Sydney Campbell
“I have difficulty envisioning—the credit unions serve their purposes in different locations as you would appreciate. So you have a credit union in Corozal and a credit union in Dangriga and they are serving their membership down there, so that it would need some real thinking of how you could bring all these credit unions into one institution.”
Three hundred and fifty credit union members from all over the Caribbean are meeting in Belize for the C.C.U.’s its fiftieth annual convention and thirty sixth annual general meeting.
The gathering is taking place aboard the cruise ship Carnival Valor as it makes its way through the Western Caribbean. Today the group toured various attractions in Belize.
