Enill wants more controls for credit unions

MINISTER in the Ministry of Finance, Conrad Enill, yesterday underscored the importance of having two regulators to monitor activities of the nation’s credit union sector in order to prevent possible abuse of funds. Last week, Eastern Credit Union president Gary Cross questioned the reason for two regulators, insisting that credit unions be monitored solely by the Central Bank.

However, Enill told Newsday that this is the first time in Trinidad and Tobago’s history that there will be some form of credit union regulation on the basis of prudential standards, and this has become necessary due to the sector’s growth and the diversification of some credit unions’ financial portfolios from simply “save and loan.” The minister said one regulator will monitor the core activities of credit unions, while the other will ensure that credit unions will not draw on the monies invested by clients for other financial ventures they wish to undertake. Enill said credit unions must ensure they have sufficient retained capital to undertake the latter ventures.