The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Senate president has urged the $350 million-strong credit union movement to promote sustainable development and saving by its members, rather than rely on consumer lending for growth.

Sharon Wilson, in remarks that echo recent opinions voiced by her husband, businessman Franklyn Wilson, warned that too many credit union members “owe more than they have in savings” as a result of excessive consumer borrowing.

Mrs Wilson, in an address to the Bahamas Cooperative League’s launch of the Global Women Leadership - Bahamas Sister Society, called on credit unions to stay true to their stated mission purpose of promoting savings and economic development.

Noting that a search of Bahamian credit union websites had not revealed “evidence of any sizeable amount of monies being used to fund sustainable development”, the Senate president suggested that the sector’s 7 per cent growth over the past five years was likely due to personal lending.

“I do understand one thing: Continuous borrowing and sustainable building do not co-exist,” Mrs Wilson said. “Truth is, many workers join credit unions for a single purpose — to borrow.

“Each time that is done the promise so nobly held out by the framers of the credit union movement and even by yourselves, fails.

“Although the credit unions promote savings, and even design programmes to incentivise savings, far too many members owe more than they have in savings, and while they get less than 5 per cent interest on savings, they pay more than 10 per cent interest on loans. They are operating in a deficit position and it’s hard to build anything, yet alone anything sustainable, when that is the case.”

Credit unions collectively have almost $350 million in assets and nearly 40,000 members, with the Senate president adding that the sector may well have $1 billion by 2020.

Mrs Wilson called on the Sister Society to use its launch as a “restart point”, and recommit to the credit union movement’s purpose as a non-profit financial institution focused as an “engine for growth and development”.

She urged credit union members to resolve to both save and invest in the Bahamas, with their institutions also helping to diversify the economy through the development of sustainable industries.

“I encourage you to let tonight be the launch of an explosion of ideas that will bring about networking and a spirit of co-operation among women leaders to advance entrepreneurship and increase industry owned by women in our country,” Mrs Wilson told attendees.

“We don’t need just another female organisation in our country, but we can use one that leads the way to ownership of industry through co-operation.

“In times of scarcity as many are now experiencing, can women save and pool their limited resources to support fundable enterprises? That is what it would take to translate this evening’s launch into benefit not only for members but for the communities of the Bahamas.”