In August 2016, the Turks and Caicos Islands Government passed the Credit Union Ordinance. However, the regulations for this bill was not completed until three years August 2019.
This is my third article writing about credit unions and I hope you the readers are not discouraged because you have not seen any physical evidence of a credit union. I can assured that there are a group of us who are working behind the scenes to ensure that a fully-fledged credit union will be in operation in 2021. However in order for the credit union to be successful, it will require the support of you so we welcome to join this movement for a credit union in the Turks and Caicos Islands.
I know some of you may be discouraged due to the losses you encountered as a result of the liquidation of TCI Bank and British Atlantic Financial Services respectively. However, the good news about credit unions in the Turks and Caicos Islands is that credit unions must have a Stabilization Fund which will provide aid to solvency issues. In addition, it is my understanding that, there is a plan to review and implement insurance on depositors’ funds so if there is a failure your deposits are protected and the credit unions will be in a positon to distribute your funds.
How does a credit union work?
A credit union is a financial institution that is owned and controlled by its members. Members will deposits their funds to the credit union and allow other members to borrow from each other at a reasonable rate. Like other financial institutions, a credit union will make its money from the interest that is charged to members for borrowing the money.
Benefits of having a credit union
The great thing about this is that being a member of a credit union gives you a sense of ownership and each owner has a voting right in the operations of the Credit Union.
Credit union gives you a sense of national pride. Furthermore, as a member, you are providing resources to help other members to borrow. How many times have we heard residents complained about having access to capital?
The interest rate on your savings will be higher than what the commercial banks are offering you.
The interest rate charges on your loans will be lower than what the commercial banks are offering you.
The credit union will be easily accessible to all islands in the Turks and Caicos Islands
The startup cost of a credit union is lower than that of bank. For a credit union, there must be a minimum of 100 members and $100,000 in capital whereas for a bank, the minimum capital requirement is $3million.
The funds of the Credit Union will remain in the country
How to join?
We have a committee but of course these members have full time jobs and so the progress of advancing the credit union may take longer. However, if we can get more members to join the committee, that would expedite the process. However, it requires individuals that are committed and willing to sacrifice time.
Of course, in addition to committee members, we need regular membership. This will require you to invest funds in the Credit union.
If anyone is interested in becoming a committee member or a regular member, please email us on email@example.com
Too many times, we talk the talk but now is the time to act by becoming a member. I cannot end this article without thanking Stephanie Misick – Jones for assistance to date. Thank you Rev Glen Misick for your introduction.