@ David

Why are you pushing these issues which all seem to be designed to force the Bushman to put licks in his Chairman elect of the National Supervisory Committee?

…you are a born gallows bait fuh truth…. 🙂

Listen folks, any money paid to Sir Courtney to do this study would have been a waste of credit union money. Hopefully this was a pro bono affair….
It is a NO BRAINER that the credit union movement should own a bank in Barbados…… EVA SINCE!!

How can you be moving millions of dollars around each month and not be interested in the banking business?

The only problem here is that the Credit Union movement has outgrown the vision of its leadership. These are a set of people who still mainly are looking to see who can get to go on a trip somewhere and how much per diem they can pay themselves without being voted out next AGM.

it is no surprise that Sir Courtney would support the idea…. Probably took him all of three minutes to make up his mind.

That Steve Belle objects is again no surprise. Steve is a sound administrator who can be relied on to do what needs to be done, but who has no track record as a developmental visionary when it comes to the advancement of the movement …. He is probably just concerned with how it may impact his day to day functions…

Caswell is an excellent guardian of the rules, upholder of righteousness and guardian of the purse…. . But again he has never been known for developmental vision nor for any outstanding management acumen.

These two should be ignored on this issue.

Indeed, as Bushie pointed out previously, Caswell was also of a similar view when Doyle, Browne and Cap Durant were pushing the General Insurance Company that is now owned by the movement.
Indeed, he effectively led a revolt which saw the movement split between the large and small credit unions.

Is that not the same Cooperators General Insurance now building that massive complex in Collymore Rock…?

Caswell should prepare himself for the job offered by the Bushman and leave these more complex issues to Sir Courtney and to Bushie…

@David

I am neither for or against the concept, but I think i like Caswell’s idea push for amendent to the legislation. To answer your question, remember that CEO of COB was the CEO of BPWCUL and he was forced out an there might still be bad blood.

@blogger

Your point does NOT answer the query that the CEO can only mouth the policy articulated by the Board of Directors.

Caswell

Give us an estimate of the following: (broad numbers would do….)

1- How much does the co-op movement pay monthly in bank fees?
2- how much does CREDIT UNION MEMBERS maintain in SEPERATE Bank accounts in order to do transactions not easily done in the credit union?
3- Do you have any idea how much INCOME is generated by a bank on a monthly basis? This is not a liability to the Credit Union, it has the potential to provide significantly enhanced LEVERAGE to the movement…. Just as Cooperators has done….
4- how many NON CREDIT UNION MEMBERS do you think would patronize a well run LOCALLY OWNED bank?
5- what credit union is what bank what? That is a myth that you have been mouthing now for decades…..and there has been NO change in the reality.

Easy solution…… Start a bank!!!

You think that Bushie or Sir Courtney born yesterday…? 🙂

David
Caswell is right you know! CREDIT UNIONS are really banks… Just owned by the customers.
BUT this is Barbados!!
For decades now the credit unions here have been manipulated into restricting their operations and their vision and have been effectively EXCLUDED from the banking community.

…Dont ask Bushie why …. And have to listen all over again about how certain groups who finance politicians have been able to manipulate the system to suit their own benefits….

Anyway, the. POINT IS, that here, credit unions are NOT included in the banking community as happens in the US,Canada etc.

Now they can respond (as Caswell is suggesting) by insisting on having the way made clear to force the banks to accept credit unions into their network…. (good luck!!)

…..or just own a bank.

It is a no BRAINER….

Now David, imagine owning a bank and having a committed body of 30,000 members or about 30% of the working population….

Suddenly, interest rates become much more transparent….

Suddenly, loans for business purposes become much more available…

Suddenly, support is available and a model is created that leads to the establishment of a Cooperative Supermarket and distribution sector….
…..surely you get the drift…

Where there is no vision, …… The poor will only get poorer…

Why would Sir Courtney recommend Capita?

@David

The CEO normally works behind the scene to get support for a concept if he has an interest in it moving forward.

@Caswell

I didnt know why he was fired, but i assumed that you know what u r talking baout on this one so I shall retreat.

It is simply incontestable that Barbadian credit unions (and trade unions and other mutuals) should be given legal authority to carry out the functions of a balance sheet bank. All it will take, as has been pointed out, are amendments to existing credit union legislation.
What is clear is that the credit unions would not work cooperatively simply because each CEO would want to be boss. This is part of contemporary Barbadian culture.
The net result of this is the destructive Barbadianisation of jobs, even if the person appointed is clearly inexperienced or even incompetent.
If the credit unions were to go ahead and create a retail bank they should make sure the person appointed to head it should be the best available, What they should do is to appoint a number two to train under that person, is s/he is not Barbadian, so that in time the position passes to a Barbadian, but one who is well trained and competent.
The simplest answer, and one staring us in the face, is for the government to turn the 18 post offices in to post office banks, but with prudent balance sheet policies.
Everything is in place. Post offices already perform many of the retail functions of a retail bank government would be able to buy the technology off the shelf, the training of staff will be minimum, it can be rolled out as a soft launch, starting with the rural post offices, ironing out the basic launch problems, then bringing it to the big ones.
What we have at present is a series of cross-border banks, owned by Canadians, Trinidadians and Bermudans.
Apart from the regulatory issues this structure presents – regulating a subsidiary is different to regulating a branch.
Most important of all, it has serious implications for the financialisation of local businesses.
So, for senior regulators to say that it is an advantage for Barbados to have a large number of Canadian owned banks shows his ignorance of financial regulation or of financialisation in general.
The quality of the debate we get is a reflection of the knowledge of the people making the decisions.
A credit union bank, yes, but also a post office bank. Then Barbadians should remove their savings from these foreign-owned banks and bank with locally domiciled ones. We pay a high price for our ignorance.

o matter where he os she comes from. Whast they should do is appointe ARvi

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What we have at present is a series of cross-border banks, owned by Canadians, Trinidadians and Bermudans.

To be clear, with the sale of Butterfield bank(pending final regulatory approval) it will mean ownership concentration confined to Canadians and Trinidadians.

food for thought.

The Globe and Mail

Published Thursday, May. 31 2012, 6:13 AM EDT

CIBC, Canada’s fifth-largest bank by assets, made $811-million, or $1.90 a share, in the quarter. That compared to profit of $767-million, or $1.80 a share, during the same period last year.

Canada’s largest bank made $1.56 billion, or $1.01 a share, on continuing operations in the quarter, which was slightly lower than what analysts were expecting. That compared to net income of $1.68 billion, or $1.10 a share during the same quarter a year ago.

The Bank of Nova Scotia reported $1.3-billion in net income attributable to common shareholders in its second quarter of 2012, compared with $1.5-billion during the same quarter last year.

I will leave it to the BU financial maguffees and Bushie to analyze given the ownership of Banks in Barbados.

Back in the day we had Bourne, Lewis, Boyce, Doyle et al who led (showed vision) to the credit union movement – who are those people doing the job today.

@Caswell

Wasn’t mention made of the purchase in the minutes and therefore members had a chance to challenge the transaction?

It seems inconceivable that a credit union would spend millions to keep a person(s) employed. Buying a CLICO asset to relieve the government of embarrassment over CLiCO seems more plausible.

@caswell

How do you explain that at any AGM there is Who is who in attendance.

@BT

Ralph Boyce, retired PS Layne and the list is endless when one peruses the minutes!

BTW has anyone read today’s Nation editorial? Some of the questions are irrelevant but it is good that at least they are asking.

@Onions

To use Caswell as an example he has been strident and then he formed his union. Your point exactly?

David

I was only defending myself. Carl should have stuck to complaining about noise, that is his niché.

Well well, a Credit Union Bank or Credit Unions being allowed to function like banks (whether or not they are accepted by the Banking community) would see a mass exit of Banks from Barbados starting with the BNB and a drying up of Barbados’ access to major capital markets around the world. It will certainly lead to the drying up of major revenues to both political and the removal of the phrase “moral suasion” from the local vernacular … HA HA HA HA HA … MURDA …! The Supervisor of Banks would be axed and a major slice of the activities of the Central Bank of Barbados terminated. Ba’bados would collapse as a viable economic entity within a few years … HA HA HA … The problem is that without a crystal ball, non a wunna could say otherwise … MURDA …!!!

BAFBFP is, to put it mildly, talking nonsense. Where is the evidence. A Barbados-domiciled bank would be the best thing to happen to the financialisation of business in Barbados since the end of the Second World War.
In fact, a more competitive local bank will see the robbery by the Trinidadian, Canadian and Bermudan banks coming to an end and the treating of local customers with due respect.

Hal Austin,
a local competitive Barbados-domiciled bank cannot possibly offer the “services” established International banks can. International banks have their tentacles well planted are all over the world.

Are you suggesting a Barbados-domiciled Internationally aged bank?

A locally-owned balance sheet retail bank would not need to offer the so-called services that international banks offer. Those services are what we call wholesale banking, such as securitisation, derivatives, etc. A balance sheet bank would offer a current account, a notice account, credit cards with a limited credit, secured lending to individuals and small and medium enterprises, and mortgages to account holders with savings.
This is the kind of service that a credit union bank should offer, with the add-ons including ATMs, direct debit, standing orders, and so on.
Anything beyond this will be venturing in to the area that led to the banking crisis. What are these services that international banks offer that a balance sheet based bank would need to offer?
The real problem with banks is their flawed business models – borrowing short (ie on the inter-bank market for anything from overnight to three months) and lending long (ie mortgages for anything up to 25 to 30 years).
A good example of this is that most businesses have assets of about 30 per to their liabilities; banks traditional had about 12 per cent assets to liabilities, which, during the boom years, they drove down to as low as eight percent. Basel 111 is driving this up to 18 per cent, but not for another six years.
If everyone who had savings with a bank went to withdraw their money the banks could not cope. There would be a run on the bank. Banks operate on the principle that if some account holders withdraw money, others would deposit savings.
This is the problem, added to which is that in Western democracies banks do not have to report their finances in the way that other businesses have to. They do not have to account for their liabilities in the same way.
We need a Barbados bank. This was the serious mistake made by Arthur, selling BNB..