Fair rate of return pledged

WITH $1.5 billion on deposits at Credit Unions, members have been assured that the movement will continue to offer fair rates of return on their savings.

President of the Barbados Co-operative and credit Union League Limited (BCCULL), Anderson Henry gave this assurance. He was at the time addressing last Saturday’s annual general meeting of the League at the Lloyd Erskine Sandiford Conference Centre.

The President said that at present he can safely say that the majority of Credit Union members are getting interest on deposits above what the commercial banks are paying on similar deposits.

“We pride ourselves on that,” he said to loud applause by those present.

He said that during the current protracted economic crisis they have led the way in cushioning the impact on members. “We have restructured loans in response to changed borrower circumstances. Further, notwithstanding the de-regulation of the interest rate on savings we have continued to put our members first by continuing to offer fair rates of return on savings,” said the President.

He also pointed out that currently the interest rate on savings deposits varies across Credit Unions from between 1.5 per cent to 3.5 per cent. He said he did not have the rates on loans but noted that they too varies across the sector. Deposit rates at commercial banks are less than one per cent.

Deposits as of June 30, 2017, totalled $1.56 billion, while overall assets with the movement were put at $2.13 billion.

Henry said that Credit Unions practice financial inclusion which is at the top of the agenda for the G20 group of nations. The local movement, according to him, has attracted 190 000 plus members from all walks in particular those who have historically been marginalised by mainstream financial institutions.

“The movement has been offering savings and credit products tailored to suit their needs with value added enhancers such as insurance of loans and savings at no direct cost to the members,” he told the meeting. JB