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Protection for credit union members

A deposit insurance fund for members of the credit union movement is likely to be in place before the end of this year, according to Chief Executive Officer of the Financial Services Commission (FSC) Randy Graham.

This means that if a credit union fails, its members are protected up to a certain amount.

The banks currently have a similar measure in place, which protects every account holder up to $25,000. Graham said the same principle would apply for the credit union movement, which boasts assets of about $1.8 billion.

The FSC executive first told journalists at a news conference this morning that the deposit insurance scheme was one step closer, and later revealed to Barbados TODAY that, “we can have that deposit insurance some time in the second half in 2016.

“That is definitely the hope, but we don’t expect it to go past 2016. Sometime in 2016 we expect to have this in place,” Graham reiterated.

He explained that the relevant requirements were being considered, including the necessary legislative amendments, which have been reviewed by both the Ministry of Finance and the Chief Parliamentary Council.

He added that the FSC and the Central Bank had already looked at the funding requirements and “we are actively hoping to have that in place in short order, as soon as we can get the legislative framework sorted for the deposit insurance.

“We are just making sure that when the final legislation is prepared that it fits the credit union movement and it takes into consideration the characteristics of the Barbados credit union movement. That is why we are taking some time to get it right. But I have every confidence that every stakeholder will support this and we will have it in place some time during 2016,” Graham insisted.

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