sJU5 398im5WjrIJirbeG-Credit Union AGM Booklet 2024 - Flipbook - Page 20
20 Credit Union AGM Booklet 2024
b) WHEREAS Rule 17C states “Pursuant to section 32 of the Act and as an additional
safeguard to ensure the Credit Union can meet members’ demand for loans while
maintaining required liquidity coverage ratios, deposits may be accepted from nonmember core employers listed under Rule 5. The Board of Directors shall develop a
policy on non-member depositors and monitor its execution by management”; and
c) WHEREAS under Rule 5 core employers include:
•
The Credit Union;
•
The Government of the Cayman Islands;
•
Government-owned entities and Statutory Authorities operating in the Cayman Islands;
•
Utility companies and wholly owned subsidiaries of such utility companies operating in
the Cayman Islands, subject to the list of companies approved by the Board;
•
Health Care Facilities licensed to operate in the Cayman Islands, subject to the list of
facilities approved by the Board; and
•
Education Facilities licenced to operate in the Cayman Islands, subject to the list of
facilities approved by the Board.
d) WHEREAS the Credit Union requires additional funds to meet the demands of members
for loan products, which generate the income to pay dividends, the Board therefore
proposes to amend Rule 17C as follows:
e) BE IT RESOLVED that this AGM approve that Rule 17C be amended to add nonmember Caymanians, locally established businesses, and not-for-pro昀椀t organisations,
subject to a list approved by the Board of Directors, as an additional measure to ensure
that the Credit Union can meet member demands for loans.
21.2
The CEO opened the 昀氀oor for questions concerning Resolution No. 3:
a) Omeria Gordon asked if members could access the list of entities permitted to make 昀椀xed
deposits at the Credit Union. The CEO responded that members, as shareholders, could
request information if they had concerns, though the Board’s role was to ensure prudent
management. The First Vice Chairperson noted that sharing the list might be restricted by
data protection rules and reminded members that by approving Resolution No. 3, they
were entrusting the Board to act in the Credit Union’s best interest.
b) Osbert Smith inquired whether accepting non-member deposits was a unique practice
for the Credit Union or common in other credit unions globally. The CEO explained that in
2019, research revealed that this practice was included in the rules of several regional
credit unions. However, those credit unions later shifted away from non-member deposits
by broadening their bond to secure additional funding.
c) Mr. Smith mentioned a case where a member was informed that loan appointments
weren’t available until January 2024 and asked about the delay. The CEO attributed the
delay to high loan demand, with the calendar 昀椀lled through January. She added that
headquarters was at capacity, limiting staff expansion, and pointed out the competitive
market for loan of昀椀cers, with banks employing various tactics to retain staff. Despite these
challenges, the CEO assured members that efforts were underway to improve the loan
application timeline.
d) Concerning non-member depositors, Eziathamae Bodden asked what the return on nonmember deposits would be. The CEO clari昀椀ed that non-member deposits would only be
accepted if required to enable the Credit Union to maintain its liquidity ratios. She
explained that the interest rate for non-member deposits must be competitive for the
Credit Union to compete with the commercial banks.
