Title: Programme : XV Annual Conference of the Caribbean Studies Associaton, Trinidad Hilton Hotel, May 22 to 26 ,1990
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THE NEW "VENTURE CAPITALISTS": THE CARIBBEAN CREDIT UNION


MOVEMENT IN THE YEAR 2000







By

Maxine McClean


Lecturer Department of Management Studies
University of the West Indies
Cave Hill, Barbados









Paper presented at the XVth Annual Conference of the Caribbean
Studies Association, Port-of-Spain, Trinidad & Tobago,
May 22-26, 1990











THE NEW "VENTURE CAPITALISTS": THE CARIBBEAN CREDIT

UNION MOVEMENT IN THE YEAR 2000

ABSTRACT:


Small businesses and aspiring entrepreneurs in the region

frequently complain of the inability to secure adequate funds at

a time when there are charges of excess liquidity in the banking

system in Barbados for example. In recent times however several

individuals have found a solution to this problem in the credit

union movement.

Recent statistics on the credit union movement in the

Caribbean indicate that the members of unions affiliated to

Caribbean Confederation of Credit Unions have amassed a total of

$Bds.l,404,287,000 in assets, and received loans of

$Bds.726,759,000 (1989 Annual Report of the CCCU). Traditionally

these resources have been onlent to members for acquisition of

consumer products primarily. While the credit union movement has

provided venture capital to its members, its current structure does

place some major limitations on the extent to which it can function

as a "venture capitalist". This paper explores some alternative

ways in which the credit union movement can increase its lending

to the business sector both within the existing structure and under

new organisational arrangements, at the national and regional

level.










Introduction


In the Commonwealth Caribbean commercial activity has been,

and continues to be dominated by small businesses. In fact if

international definitions of small business are applied strictly

few businesses would fall outside these classifications.1

Beyond small size, commercial activity in the region is

characterized by a rapidly growing informal sector. Part of the

explanation for this informal activity is the inability and

sometimes the unwillingness of entrepreneurs to secure investment

capital and other funding from the traditional sources, namely

commercial banks and other development finance institutions. Where

funding is unavailable these individuals seek to operate on

shoestring budgets, most often in the distributive, retail and

service sectors, where financing requirements are lower than in

manufacturing and agribusiness for example.

Small businesses frequently complain of their inability to

secure adequate amounts of financing. Commercial banks are often

accused of insensitivity to the financial needs of small and new

business ventures, and reluctance to lend to this sector.

Realistically commercial banks are of necessity conservative, their

first responsibility being to their depositors, and thus high


1For definitions of small business see Leah Hertz. In Search
of a Small Business Definition: An Exploration of the Small
Business Definitions of the US.. The U.K., Israel. and the
People's Republic of China. Washington D.C., University
Press of America, Inc. 1982.











levels of risk-taking on their part is not to be expected.

Internationally there has been growing concern about the role

and importance of new business creation and its impact on a

society's economic activity. In the Caribbean where governments

have been the primary generators of employment, policy makers are

extremely aware of the limitations of such a strategy and have

devised policies and programmes to promote private sector growth

and development. New business creation is one aspect of this

thrust.

Several institutions have been created to facilitate such

activity. In Barbados, the Barbados Industrial Development

Corporation (BIDC), the Barbados Development Bank (BDB), and the

Export Promotion Corporation (EPC) are examples of such agencies.

Similar organizations exist throughout the Commonwealth Caribbean.

Together these agencies provide a vast range of financial and

technical services, often duplicating each others' efforts.

Nevertheless there is a widely held view that these services are

inadequate, particularly in the area of financial support, which

is often seen to be lacking.

An alternative position frequently highlighted by some

academics, in the press and other media, is that businessmen need

to assume a greater share of the responsibility for meeting their

financial needs. The adoption of cooperative principles and

involvement in the credit union movement is one way of achieving

this objective. Indeed several small businessmen in the region

have turned to the credit union movement for support. Consequently











credit unions around the region have been financing business

ventures as part of their ongoing lending activity However to

date few have established separate programmes or policies to

provide business financing. Given the rapid growth of the credit

unions and the repeated calls by the business community and

prospective entrepreneurs, there is need for credit unions to

address the issue of creating specific programmes to provide

business financing.

The existing legislation under which credit unions operate

restricts the investment and general utilization of members'

savings.2 Thus any initiatives to provide funds to business must

be informed by the provisions of the Act. It may therefore be

necessary to lobby for amendments to the legislation if business

financing is to become an investment option for credit unions.

This paper explores some alternative ways in which the credit union

movement can increase its lending to the business sector both

within the existing structure and under new organisational

arrangements, at the national and regional level.









2 The Co-operative Societies Act, CAP. 378 Section 34 (Laws
of Barbados) states that "A registered society may invest
in funds in the Government Savings Bank or in such manner
as may be approved by the Registrar". This provision
applies in the case of most of the other islands for
example Antigua, and St. Lucia.










The Credit Union Movement In the Commonwealth Caribbean

The growth of the Co-operative movement in the region appears

to have begun in the 1940s, even though there are references to

cooperative activity as far back as the mid1800s, after the

abolition of slavery.3

In the Annual Report of the Department of Science and

Agriculture, Barbados (1946-47), there is reference to a Co-

operative Officer who reported the establishment of "several groups

with varying degrees of co-operation have come into being during

the year....". Similar ventures could also be identified in other

territories.

In addition to the efforts of individuals, the idea of

promoting a co-operative movement came to the English speaking

Caribbean as a directive from the Colonial Office in London. In

March 1946, the then Secretary of State for the Colonies despatched

a memorandum to all Colonial Governors. It advocated the following:

1. Provision of a legal framework within which co-operatives

would be registered and supervised,

2. the appointment of a Registrar of Co-operatives.4

As a consequence Co-operative legislation in the region closely

followed the lines laid down in this despatch and continues to be

very similar from island to island.


301ga Grant. "History of the Co-operative Movement in Guyana"
Co-operative College, Kuru Kuru Guyana.

4
4Annual Report of the Department of Science and Agriculture,
Barbados, 1946-47











Credit unions have proven to be the most successful

co-operatives and while they have long been looked at as "the poor

man's bank", certainly in the last decade they have assumed

significance as a major non-bank financial intermediary across the

Commonwealth Caribbean. In reality as an alternative to commercial

banks, credit unions started out by fulfilling the unmet needs of

the poor. In the words of one of the pioneers of the international

credit union movement:

The credit union "allows members to supply co-operatively
their own short-term credit needs. The general stimulus for
such activity is the inability of certain classes etc. to
readily get credit at reasonable rates through existing
financial institutions..."

In the last decade all classes within our societies have come

to recognize the benefits to be derived from credit union

membership, and the growth in membership clearly reflects this.

Appendix I shows Movement Statistics for the member countries of

the Caribbean Confederation of Credit Unions (CCCU) for the period

1984-1988. Over this period regional membership moved from 553,651

to 755,977 persons. Total Assets increased 220%, while loans

Outstanding grew by 130%.

These statistics also indicated that there were 18 affiliated

countries with 449 active credit unions in 1988. Total shares and

deposits for the same year were $Bds. 967,823,000, while total

assets stood at $Bds. 1,404,287,000 and loans outstanding were

$Bds. 726,759,000.


5 Coady M.M. Masters of Their Own Destiny. Harper &
Brothers Publishers. USA 1939

5










The above statistics can be contrasted the statistics given

in the 1980 Annual Report when regional membership was 397,330 in

410 credit unions, total shares and deposits were $Bds.

279,260,000, total assets were $Bds.323,613,000, and loans

outstanding were $279,648,000. In this year there were only 16

affiliates. The figures nevertheless demonstrate the rapid growth

in the movement.


The Current Structure of Credit Unions in Barbados

Regional credit unions are structured along the same lines.

For purposes of illustration, the situation that obtains in

Barbados is highlighted here. Credit unions in Barbados operate

under the Cooperative Societies Act, passed in 1949 and amended on

several occasions. The Act is currently being redrafted. Most

credit unions operating in the island are members of an umbrella

body, the Barbados Cooperative Credit Union League, which was

founded in 1957. The League itself is in fact a credit union as

far as this legislation is concerned, and is also subject to its

various provisions.

Individual credit unions are termed primary bodies, while the

League is considered a secondary or apex body. The league assists

in the development of the credit union movement by providing a

range of central services, for example accepting deposits from,

and lending to member credit unions. It is involved in programme

development for and promotion and representation of its members.












The Act strictly regulates all key aspects of a credit

union's operations. Important areas regulated by the Act are:

1. Loans to members,

2. Investment of funds,

3. Disposal of profits,

4. Transactions with non-members.

Specifically the law provides for the following:

Loans made by a registered society must be to members, a society

can, with the Registrar's consent, make loans to another registered

society however. Credit unions may invest their funds in the

Government Savings Bank or in a manner approved by the Registrar

of Co-operatives. These restrictions are the same in the Co-

operative Societies Act, Chapter 125 of the Laws of Antigua, and

in St. Lucia's Co-operative Societies Ordinance. The nature of

these regulations will exert a significant influence on the ability

of credit unions to respond to the need for venture capital.

The existing Act requires credit unions to allocate one-fourth

of their annual profits to a reserve fund (Section 35(1)

Cooperative Societies Act). The Bye-laws of the City of Bridgetown

Co-operative Credit Union Ltd. describe this Reserve Fund in some

detail. They state that "no bad debt shall be written off against

profits nor be charged to the Reserve Fund without the approval of

the Committee, the Supervisors and the Registrar (of Cooperatives)

....". This provision has implications for the approval of loans

that may be viewed as high risk.











According to existing legislation, entrepreneurs seeking to

borrow a credit union's funds must be a member of that credit

union. Moreover credit unions in the region typically lend members

a maximum of three times their share balance and two times the sum

held in deposits, subject to the maximum loan ceiling of that

credit union. In the case of Barbados this may range from a low

of $5000.00 for small credit unions to $100,000.00. In the latter

case such loans are for mortgages only. These requirements place

further constraints on businessmen seeking financing. As a

consequence individuals may be unable to secure adequate funds

given existing loan limits and savings requirements.


Credit Union Loans For Business Purposes

Traditionally credit unions have primarily made loans for the

acquisition of consumer items. Statistics for credit unions across

the region will show that loans for consumer goods and

transportation have in the past accounted for the largest

percentages of total loans. In recent times a conscious effort

has been made to channel funds into other areas, namely housing and

business investments. The lack of a uniform system of classifying

loans makes it somewhat difficult to compare country statistics.

Moreover statistics in the CCCU's Annual Reports are aggregated.

National credit union League reports generally do not provide a

detailed breakdown of loans.

The performance of individual credit unions in the granting

of business loans will nevertheless demonstrate the efforts that











are being made in this direction. The Eastern Credit Union of

Trinidad and Tobago, with a membership of 45,339 at December 31,

1988 has sought to make small business development a priority area.

In 1988 business loans accounted for 12.1% of all loans or

$6,088,000.00. This represented an increase of approximately 03%

over the 1987 figure.6

The City of Bridgetown Cooperative Credit Union a relatively

new credit union in Barbados is a community type credit union which

draws its membership from the environs of Bridgetown. Unlike other

credit unions which operate under more restrictive common bonds,

the nature of the City of Bridgetown is such that it can be

expected to attract a wide cross section of persons from various

income brackets and occupations, and consequently the demand for

business loans can be expected to be higher than in employment and

associational credit unions.

The business loan component of its loan portfolio is perhaps

a more accurate reflection of the demand for this type of loan.

The 1988-89 Annual Report indicates that 7% of total loans, or

$358,578.00 was lent for business purposes. In the 1990 Report 11%

of loan disbursements were business loans. This represents an

increase of 2365 in a single year. Thus for this category of loan

both the dollar value and the percentage share of the loan







6Eastern Credit Union. Annual Report 1989. P.13

9












portfolio is rising.7


Many have come to recognize the potentially vital role that

can be assumed by the credit union in the attempts to foster

entrepreneurial activity in the country, particularly in light of

the rapid accumulation of capital in the movement. The existing

structure of the movement and the laws governing its operations

restrict the ability of the movement to respond immediately and

autonomously to the need for venture capital.


The Concept Of Venture Capital

The term venture capital is frequently used loosely to refer

to various forms of business financing. In a stricter sense, it

may be defined as:8

"the provision of risk bearing capital, usually in the
form of a participation in equity, to companies with high
growth potential. In addition, the venture capital
company provides some value added in the form of
management advice and contribution to overall strategy.
The relatively high risks for the venture capitalists are
compensated by the possibility of high return, usually
through substantial capital gains in the medium term".



7City of Bridgetown Co-operative Credit Union Annual Report
for the Period April 1st. 1986 March 31st. 1987, April 1st.
1987 March 31st. 1988, April 1st. 1988 March 31, 1989.
p. 31.

Annual Report For the Period April 1st. 1989 -
March 31st. 1990.


Chris Bovaird. Introduction To Venture Capital Finance.
Pitman Publishing, London. 1990. p.3. Quote of Dr. Neil
Cross, Senior Executive with 3i, one of the world's
largest venture capital companies.











A second definition cited by Bovaird is that appearing in the Bank

of England Quarterly Bulletin 1984:

"An activity by which investors support entrepreneurial
talent with finance and business skills to exploit market
opportunities and thus obtain long term capital gains".

In the context of this paper the term is used in a somewhat

modified manner. Given the basic operating principles of credit

unions, see Appendix 11, credit unions are not preoccupied with

generation of high profits. Thus that element of venture capital

activity suggesting the motive of high returns is not of primacy

for credit unions. As "venture Capitalists" the regional credit

union movement would have as its objective the provision of medium

to long term funding for investment, and the provision of the

necessary management advice and support.


Alternative Approaches To Small And New Business Financing

One approach that may be adopted is what is here termed a

Venture Capital Fund. Credit unions in Barbados range from very

small, 32 members in the case of the Market Workers Credit Union,

to large, 12750 members in the Barbados Public Workers Credit

Union. These statistics demonstrate that it might be impossible

for small societies to offer meaningful business financing to

members. The disparities which exist in the size of credit unions

suggests that one way of financing small business would be the

creation of a special fund or institution for this purpose.


Ibid. p. 3.












Given the legal restrictions imposed by the Co-operative

Societies Act a credit union venture capital fund could be

established using some proportion of the profits of credit unions.

This fund should be administered by the League or some other

independent body made up of representatives of participating credit

unions. Funds should be made available to credit union members and

perhaps to persons in other areas of the cooperative movement. In

this way the credit union movement can assume a significant role

in fostering not only the development of entrepreneurs but also

more specifically it would be playing a major role in fostering the

development of the cooperative movement of which it is a major

part. This certainly would be a means of realising the goal of

cooperation among cooperatives (See Appendix 11 Credit Union

Operating Principles).

In essence such a fund would serve as an investment

opportunity for individual credit unions. The financial stability

of credit unions would not be jeapordised as a portion of reserves

rather than the regular savings of members would not be used to

finance such a venture. At their annual general meetings, the

members of individual credit unions can determine the sum to be

invested in such a fund. Profits generated by this fund would be

distributed to credit unions.

There advantages to this approach, namely:

1. The members of small credit unions will be in a position

to borrow loans of a size not available through their

credit unions.











2. Given the higher risks associated with the business

loans, these risks will be shared by the movement.

The regional movement had reserves of Bds.$49,374,000 in 1988.

These represented 5.1% of total shares and deposits which were

$Bds.967,823,000. It is suggested that 10% of these reserves be

invested in such a fund as an initial injection of capital, that

is a total of $4,937,400 would become immediately available to

regional entrepreneurs. These statistics taken in isolation say

little. Looking at Barbados, an attempt is made to illustrate the

value of this proposal. Table 1 summarises the level of reserves

as a percentage of shares and deposits and total assets. The

reserve ratios for Barbados in 1988 fall in line with the ratios

for the region. If the reserves of the CCCU member countries are

expressed as a percentage of shares and deposits they range from

a low 3.6% in 1985 to a high of 6.4% in 1986. In 1988 the figure

was 5.1%. A fund established with 10% of this would be

Bds.$636,500.00.

This figure compares quite favourably with the level of

funding provided by the Barbados Development Bank (BDB). In its

Twentieth Annual Report 1988-1989, the BDB reports that loans

approved for Small manufacturing, Small Business and Micro-Business

were Bds.$1,376,700.00. This figure represents 216% of the fund

identified above. Moreover it has been reached after 20 years of

the existence of the Bank. Moreover an examination of the BDB's

loans will show that individual loans can be in excess of

#250,000.00. The largest small business loan granted for the











period was $323,000.00. It is not envisaged that a single loan

should exceed $75,000. This figure compares favourably with the

average loan size for the three BDB loan categories identified,

namely $44,940.00 for small manufacturing, $44,046 for small

business and $6,800.00 for the microbusiness category.10

The venture capital fund described above can be duplicated on

a regional basis, or alternately a regional fund can be set in a

similar way, but instead of dealing directly with individuals can

make funds available to national venture capital funds. Under the

existing legislation permission must be sought from the Registrar

of Co-operatives to deploy reserves in this way. It is not

envisaged that this should be difficult to obtain.

One option that can be explored is the securing of funds by

the movement, either on a national or regional basis, from an

external source for onlending to individual members or credit

unions. This approach is not totally new to the movement as it has

been done in the case of Barbados for mortgage financing. The

advantage of this is that these external funds in essence

constitute an injection of funds into the movement and will not

have any potential detrimental impact on the movement's capital

structure. Such a scheme can be readily accommodated under

existing legislation.

Individual credit unions may have the resources to develop in
house financing programmes. The Eastern Credit Union of Trinidad


10These averages were calculated from figures given in the
BDB's Annual Report 1990.

14










and Tobago has adopted a formal strategy aimed at fostering

entrepreneurial development. This programme described in the 1989

Annual Report, indicates that entrepreneurs can benefit from a

range of services offered by the credit union. These services if

enhanced can constitute the 'management advice' which forms an

integral part of venture capital activity. What needs to be put

in place are special provisions for persons seeking business loans.

The approach is one that can be adopted by those credit unions with

substantial resources.

Another option is for credit unions, within the framework of

existing laws, to design separate procedures for business loans.

This may require the modification of legislation or the permission

of the Registrar. Currently repayment periods vary for different

categories of loans, but this proposal implies a more comprehensive

system than currently exists. For example personnel competent in

financial analysis and project appraisal would be required to

assess the feasibility of these projects. For small credit unions

this may not be an affordable option.


Conclusion

From the statistics cited it evident that the credit union

movement in the English speaking Caribbean is assuming an

increasingly important role, as is indicated both by the rapid

increase in membership and its financial holdings. Marion argues

that the Caribbean credit union system is now serving 14% of the

region's working age population. This compares favourably with a











figure of 3.6% in Latin America, 1.5% in Africa and 1.4% in Asia.11

He further states that:

"Credit unions have captured a small but significant
share of the total savings market in developing
countries, as measured by the sum of quasi-money (i.e.
interest bearing liabilities of the banking system) plus
credit union savings. Credit union savings as a percent
of total savings ranged from a high of 6.2% in the
Caribbean, to 4.3% in africa, 1.2 percent in Latin
America and 0.8% in Asia. This compares with the U.S
credit union movement's savings market share of 6.95...."

The movement has traditionally catered to the needs of members

for consumer credit, however the movement's leaders have recognized

that entrepreneurial activity is critical to the growth and

development of the region and are seeking to respond by making

funding available to members. In many ways current legislation

severely restricts the movement. This paper explored in a very

general way some options that can be considered and developed by

the academic community and the co-operative movement. Hopefully

it will generate further interest in the subject.













J1. Peter Marion. Building Successful Financial System: The
Role of Credit Unions In Financial System Development.
Prepared for Presentation to the Rural Finance and
Financial Sector Development Workshop under the auspices
of Rural and Institutional Development Bureau of Science
and Technology, United States Agency for International
Development. Washington, D.C. Sept. 1987 p.12.

16









REFERENCES



Barbados Development Bank. Annual Report, 1988-89



Bovaird, Chris. Introduction to Venture Capital Finance. Pitman
Publishing. London, England. 1990


City of Bridgetown Cooperative Credit Union Ltd. Annual Report.
1986-87, 1987-1988, 1987-88


Annual Report 1989-90


Bye-Laws


Coady M. M. Masters of Their Own Destiny. Harper and Brothers
Publishers. USA 1939


Eastern Credit Union Annual Report 1989


Grant, Olga. History of the Cooperative Movement In Guyana.
Co-operative College, Kuru Kuru, Guyana


Marion, J. Peter. Building Successful Financial Systems: The Role
of Credit Unions In Financial System Development. Prepared
for presentation to the Rural Finance and Financial Sector
Development Workshop under the auspices of Rural &
Institutional Development Bureau of Science & Technology,
United States agency for International Development.
Washington D.C. Sept. 1987




















TABLE 1: ANALYSIS OF RESERVES OF CREDIT UNIONS IN BARBADOS


RESERVES


587,000

591,000

1,217,000

1,838,000

6,365,000


SHARES &
DEPOSITS


20,310,000

31,797,000

48,701,000

66,843,000

94,139,000


TOTAL
ASSETS


22,842,000

37,482,000

55,544,000

69,012,000

106,638,000


1 AS
% 2


2.9

1.9

2.5

2.75

6.8


1 AS
% 3


2.6

1.6

2.2

2.7

6.0


Source: 1988 Annual Report, Caribbean Confederation of Credit Unions


YEAR



1984

1985

1986

1987

1988


- - - - - - - r - - - - - -


I I


--- ---








CARmBBBANCPEDESk rOT BSSHTBI

MOVEMENT STATISTICS 1984 1988
CREDrI UNIONS MEMBERS
AFFILIATES 1984 1985 1986 1987 1988 1984 1985 1986 1987 1988
Angaqu 0 0 1 1 1 0 0 65 65 43
Anmipa A Barbida 7 7 7 7 7 1,309 1,821 2,194 2,546 3.057
Baham s 10 11 12 11 11 5,800 5,915 6.621 7,472 8,066
Babsdas 34 34 34 35 38 15.015 18,403 23,076 28,148 32,145

Beliae 21 21 21 21 22 11,934 12,479 13,548 15,242 15.443
Bermuda 0 1 1 1 1 0 2.694 2,900 3.162 3,342
Cayman Islands 1 1 1 2 1 1,104 1.280 1,570 1,772 1.700
Dominica 22 22 22 22 22 33,777 37.011 39,218 42,662 45,611
Grenada 18 20 20 20 20 6,129 7,196 8,573 9,414 10,326
Guyana 70 71 71 45 41 25,645 26,543 24,000 23,590 24,000
Jamaica 96 95 89 89 89 292,871 299,642 298.527 314,836 324,000
Montsenra 2 2 2 2 1 631 1,050 1.504 1,239 1,545
St. Chritopher &
Nevis 3 3 3 3 3 1,749 2,140 2,580 3.087 3,759
St. Luci 12 12 14 15 15 7,501 6,923 7,569 8,111 9,106
St. Vincent & The
Oweadins 7 7 7 7 8 4,605 5,404 6,504 8.704 10.287
Suriname 32 33 29 29 28 7,500 7,650 7,650 6.531 7,760
Tortola 1 1 1 1 50 72 75 80 80
Trinidad & Tobago 111 73 108 108 140 138,031 136,390 177.398 230,000 255,707
TOTALS 447 414 443 419 449 553,651 572,613 623,572 706.661 755,977


% Growth Over Previous
Year 4.2 (7.4) 7.0 (5.4) 7.2 10.8 3.4 8.9 13.3 7.0


CARIBBFAN (INFEDERATION OF CREDIT UNIONS
UARML REPUOR 1988


r










MOVEMENT STATISTICS 1984 -198
FINANCIAL

Shares & Deposit in Thoumands Reserva in Thbou ds
AFFILIATES 1984 1985 1986 1987 1988 1984 1985 1986 1987 1988


Anguilla

Antigua & Barbuda

Bahamas

Barbados

Belize

Bermuda

Cayman Islands

Dominica

Grenada

Guyana*

Jamaica

Montserrat

St. Christopher &
Nevis

St. Lucia

St. Vincent & The
Grenadines

Suriname

Tortola

Trinidad & Tobago


0

460

13,668

20.310

4,355

0

4,089

14,345

4.087

11,026

126.938

201


653

4,336


2,492

7,258

0

355,214


0

806

12.498

31.797

4.593

3,524

5,767

17.176

4.939

12,761

126,866

274


989

5,500


3.501

8,262

29

322.998


1

1379


16.806

48,701

5,622

4,086

6,849

21.923

6,150

5,622

138,879

346


1,450

6,547


4,731

8.601

40

481,675


2 7

2.289 3321

23,062 27.966

66,843 94,139

49,107 8,108

4,988 5.024

9,107 9,414

29.275 45,614

7,776 9.261

6,097 2,000

158,479 181,631

416 775


1.954 2,743

7,898 10356


6,150 8.962

8,411 10,755

42 42

529,843 547,705


0

13

402

587

303

0

163

382

246

535

5,132

13


196

268

0

13.187


0

26

143

591

271

435

220

439

352

566

5.590

10


165

306

2

11,338


0

45

533

1,217

298

542

302

1,651

355

443

7.583

13


189

566

5

21,967


0

61

706

1,838

298

673

289

2,086

435

705

8,464

16


246

679

6

24,164


0

103

602

6,365

507

653

331

2.512

472

216

9,722

20


347

849

6

25,782


TOTALS 569,432 562,280 759,410 911,739 967,823 21,775 20.692 35,994 41,004 49.374


Growth Over Previous
Year


(.7) (1.3)


9.8 2


(5) 73.9


NOTES: Totals for Anguilla and Tortola were estimated for the financial year 1988.










MOVEMENT STATISTICS 1904 1988

FINANCIAL
Lons Outstanding in Thousad Other AMets in Tboumnds Total Asets in Thouands

AFFILIATES 1984 1985 1986 1987 1988 1984 1985 1986 1987 1988 1984 1985 1986 1987 1988


Anguilla
Antigua & Barbuda
Bahamas
Barbados
Belize
Bennuda
Cayman Islands
Dominica
Grenada
Guyana


Jamaica

Montserrat
St. Christopher &
Nevis
St. Lucia
St. Vincent & The
Grenadines
Suriname
Tonola
Trinidad & Tobago
TOTALS


0 0 0 1 0
487 750 1,185 2.035 2,641

12.864 12,269 16.549 23,771 28,672
20,660 32,246 48,307 58,584 87,660
4,459 4.884 5,311 5,775 7,469
0 3,140 3,376 4,140 4,629
4.370 6,139 8,662 8,852 8,680
17,006 21,097 27,872 35,134 47,478
4,411 5,412 6.596 8,312 10,346
8,985 10,157 4,685 5,415 1,772

120,356 120,504 129,623 148,315 170.278
131 201 251 384 797

580 837 1,233 1,678 2,144
4,533 5,827 6,932 8,792 10,096

2,742 3,841 4,748 6,173 9,046
5,137 7,696 8,035 6,511 8,322
2 19 40 40 40
351.191 315.798 449,366 455,957 326,689


0
84
1.206
2,182
1,072
0
171
1,335
982
4.586
21,663
94


0
532
2,116
5,236
1,221
844
343
1,829
1,033
5,460
23,877

106


1
425
3,243
7,237
1,405
605
1.410
6,195
1,097
2,191

36,752
132


237 363 475
830 341 470


197
3,126
0
41,190


117
2,054
14
43,853


337
2,690
4
1,297


1
1,053
2,089
10,428

2,591
675
912
7,659
1,752
1,608
34,012
70


10
1,615
1,712
18,978
2,022
790
1.680
8,377
2,350
361

40,156

112


606 1,060
138 2.213


438
3,977
5


1,283
1,018
7


42.543 593,784


1 4


557.914 550.817 722.771 779.869 726.759 I 78.955 89339


0 0 1 2
571 1,282 1,610 3,088

14.070 14,385 19,792 25,860
22,842 37,482 55,544 69,012
5.531 6.105 6,716 8,366
0 3,984 3,981 4,815
4,541 6,482 10,072 9.764
18,341 22,926 34.067 42,793
5,393 6,445 7,693 10,064
13,571 15,617 6,876 7,023
142,019 144,381 166,375 182,327

225 307 383 454


817
5,363

2.939
8,263


1,200

6,168

3,958
9.750


1,708
7,402

5,085
10,725
tA*


2.294
8,930

6,611
10,488
AIC


I Z 3 q4. j
392,381 359,651 450.663 498,500


65.966 110,557 677.5281636.869 640,156 788,737 890,426


_______________________ I J


previous Year (0.5) (1.3) 31.2 7.8 (6.8) (4.0
EXCHANGE RATES AS AT DECEMBER 31, 1988
ECS BDSS.7431 GUYS BDSS.0510 BAH.S BDSS2.0144
B M BDSSI.0072 SUR FI BDS$1.1317 CAYSS BDSS2.4120


13.2 (26.1) 63.8 512.8


10

4,256
30384
106.638
9,491
5,419
10,360
55,855
12.696
2,133
210,434

909

3,204
12,309

10,329
9,340
47
920.473


1.404.287


(1) .5 23.2 12.9


JAMS BDSS.3663 BERSS BDSS2.0144
T&TS BDSS.4751 N.AS BDSSI.1191


Growth Over


PI


















































Democratic Structre
Open ad VIbluar Membershb p
Membership in a credit union is voluntary
iand open to all within the accepted common
bond of assOciation that can make use of its services
and are willing to accept the corresponding
responsibilities.

,d- Demoratl Control
Credit union members enloy equal rights to
Vote (one member, one vote) and participate
in decisions affecting the credit union, without regard
to the amount of savings or deposits or the volume of
business Voting in credit union support organizations
or associations may be proportional or
representational, in keeping with democratic
principles The credit union is autonomous, within the
lramework of law and regulation. recognizing the
credit union as a cooperative enterprise serving and
controlled by its members Credit union elected
offices are voluntary in nature and incumbents should
not receive a salary However. credit unions may
reimburse legitimate expenses incurred by elected
officials

S=NonA-DLcrlmJnaeon
Credit unions are non-discrlminatory ir
relation to race. nationality. sex. religion and
politics



Thrse Credit Union Operting Principles Ire founded in
the philosophy ot cooperation and ilt central velrui of
Iqualiy. equity and mutual slt-h4elp Aecognrrng the
vraied practical sI the implehmenistro of credit union
philosophy around frhe world. Of the hiar of these
principles is rte concept of human developmeri and rh
brotherhood of man expressed through pople wortl
together tl acheve* a beler his for tIemselve land thei
communityV.


SI N T E R N A I O N L


CREDIT UNION


OPERATING


PRINCIPLES


Service to Members
I SSernice to Members
Credit union services are directed to improve
the economic and social well-being of all
members

M Distribution to Members
To encourage thrIn through savings and thus
to provide loans and other services, a fair
rale of interest is paid on savings and deposits within
the capability 01 the credit unloro
The surplus arising out of the operations of the
credit union after ensuring appropriate reserve levels
and after payment of limited dividends on permanent
equity capital where it exists. belongs to and benefits
all members wth no member or group of members
benefiting to Ihe detriment of others This surplus may
be distributed among members in proportion to Iheir
transactions with the credit union as interest or
patronage refunds, or directed to improved or
additional services required by the members

&dldino Pinancal Stabilty
A prime concern of the credit union is to
build the financial strength, including
adequate reserves and internal controls that will
ensure continued service to membership


Social Goals
AdV On-01tf Educaiaon
Credit unions actively promote the education
of their members. officers, and employees.
along with the public in general. in the economic.
social democratic and mutual self-help principles of
credit unions The promotion of thrift and the wise use
of credit as well as education on the rights and
responsibdlities of members, are essential to the dual
social and economic character of credit unions in
serving member needs

Cooperation Among Cooperattes
In keeping with their philosophy and the
pooling practices of cooperatives.
credit unions within their capability actively cooperate
with other credit unions, cooperatives and their
associations at local. national, and international levels
in order to best serve the interests of their members
and their communities

Sodal Responsibgty
Continuing the ideals and beliefs of
cooperative pioneers, credit unions seek to
bring nbout human and social development Their
vision of social justice extends both to the individual
members and to the larger community in which they
work and reside The credit union ideal is to extend
service to all who need and can use it Every person
is either a member or a Dolential member and
appropriately part of the credit union sphere of
interest and concern Decisions should be taken with
full regard for the interest of the broader community
within which the credit union and ts members reside.


|ICODOL
OFCREDW
UNIONS NC
Approved 24 August. 1984
by WOCCU Membership Couni




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