BUSINESS MONDAY: Credit unions’ members awaiting financial reports

HAVING ended their last financial year with increased assets, more loans to members and some growth, local credit unions are gearing up to report on their financials with members hoping for improvements.

 

Many of the island’s credit unions have March 31 as their end of year reporting period and in a matter of months hold their annual general meetings.

 

At the end of September last year, there were 34 registered credit unions operating in Barbados with membership in the vicinity of about 174 000.

 

A source close to the movement said that he anticipates the members will be showing further growth, even if it not spectacular. It is being anticipated that assets could cross the $2.0 billion threshold, which the Financial Service Commission (FSC) had pinpointed in the 2015 Financial Stability Report. On that occasion, the report had said that “loans to members continued to be the largest contributor to growth, increasing seven per cent, followed by investments (six per cent)”.

 

In recent times, credit unions have been pointing to the stringent economic environment in Barbados as having some impact on their operations.

They have noted the loss of employment, reduced economic activity, and challenges which some borrowers have experienced in meeting their loan repayments. They had also complained about the Bank Asset Tax.

 

“However, the last year has seen some improvements and whether this will redound to the credit unions will be known once they have reported on their 2015/2016 operations,” he said.

 

He also noted that a good thing is that the Bank Asset Tax no longer is applicable to credit unions, although its removal will be felt during the coming financial year.