Kumar notes credit union growth

Catherine Kumar, Inspector of Financial Institutions of the Central Bank, made this comment last week while delivering the feature address at the Annual General Meeting of SECU Credit Union Co-operative Society Ltd, on the compound of their headquarters along Southern Main Road, California.

“Truthfully,” she said, “the Credit Union Movement was borne out of the bowels of the common people and it is still applicable today.”

She congratulated SECU Credit Union for its outstanding growth over the last 23 years and said “as you and the movement get bigger, you should not leave the heart and soul, that is the core philosophy of the movement behind, as this is what separates the credit union from the other financial institutions.”

She noted that SECU had also established a branch in Chaguanas and this had an increase of 39 percent membership over the previous year.

Kumar was informed that another branch would soon be opened in Princes Town as soon as suitable accommodation is located.

SECU has an asset base of $71.8 million and according to the Central Bank it is classified as medium sized. Net surplus is $4.3 million which is 6.8 percent over the 2004 figure.

“This is testimony to the hard work of your committees and staff to deliver good quality service to the membership,” she said.

She commended the credit union “for your efforts which have borne positive results with membership growing by 14 percent or 870 new members and the proposal of a dividend distribution of 7.5 percent.”

She noted that 80 percent of assets have been invested in the membership of the union in the form of loans “and this was achieved while still enjoying a low delinquency rate of 3.43 percent as compared with the average industry rating of approximately ten percent.”

She said that while change was imperative in the system, members’ savings must not be put at risk and added, that “moreover, financial difficulties in one or two large credit unions can undermine confidence in the entire movement and could conceivably have contagion effects on the entire financial system.”