Haynes: Give credit unions deposit cover
Government is missing out on foreign exchange as it drags its feet on deposit insurance for credit unions, says Barbados Police Co-operative Credit Union Limited president Hally Haynes.
He called for the credit unions to be given the coverage they needed.
“It would be remiss of me if I did not use this opportunity to say to you that the call for deposit insurance is critical. It is critical now more than ever,” Haynes said during his address at the credit union’s scholarship presentation on Wednesday.
“I say that against the backdrop that there are thousands of Barbadians across the diaspora willing to put resources within the credit union sector. But one of the caveats that stops that is that we do not have a deposit insurance scheme,” he added.
As it stands, commercial banks have a measure in place which protects account holders up to $25 000.
Haynes said that the credit union continued to provide for its members despite the harsh economic climate Barbados found itself in, but he added that the lack of deposit insurance was affecting the credit unions in the pursuit of their work.
This call has been made by several members of the credit union, and as recently as last October Barbados Co-operative & Credit Union League Limited president Anderson Henry urged Government to act.
A year before that, then Minister of Finance Chris Sinckler gave the assurance while speaking at a Barbados Chamber of Commerce & Industry (BCCI) business luncheon that the draft of the legislation to establish a deposit insurance scheme was in the final stages.
Sinckler said then that he expected the act to be in place by the following year.
However, there has been little progress since then.
“The banks have it, the credit union sector doesn’t have it,” Haynes said.
“We’re not asking for more than what the banks have. All we’re asking for is parity so our members can have that same protection as those in the banking sector,” he added.
Barbados Police Co-operative Credit Union Limited president Hally Haynes has called for deposit insurance to finally become a reality for credit unions.