The Jamaica Cooperative Credit Union League (JCCUL) is refusing to sign off on a stipulation that a start-up credit union must now have minimum capital $20 million, under new rules being crafted for the Bank of Jamaica to regulate the movement.

The group is also at odds with the Ministry of Finance over the requirements under which it offers credit to members, but insists it is not opposed to limits on unsecured credit.

The ministry has proposed that the limit be 10 per cent of a credit union's loan portfolio.

Samuda quoted the International Monetary Fund as saying "A more conventional corporate structure would move credit unions away from the principle of member ownership and potentially curtail financial services on members' shares" in support of the JCCUL stance.

Samuda, who was speaking at 25th anniversary banquet of Churches Credit Union, says the movement also wants the definition of "secured facility" in the proposed regulations to have a specific wording as follows: "Security given in the form of personal items and chattel houses, which have been insured and for which the market value is used."

business@gleanerjm.com