Introduction to the Credit Union Sector
In July 2005, Cabinet agreed that the supervision of the financial activities of all credit unions should be integrated under the aegis of the Central Bank of Trinidad and Tobago.
Accordingly, Cabinet also agreed that the Co-operative Societies Act, Chap 81:03 should be amended to remove the supervision of the financial activities of credit unions from the mandate of the Commissioner for Co-operative Development. The Central Bank will assume its responsibilities with the passage of a Credit Union Act.
The Central Bank developed a policy paper which outlines proposals for the development of a Credit Union Act and conducted consultations with both the industry and the public to ensure that the proposals were consistent with the values which govern co operatives.
The proposals took into account international standards set by the World Council of Credit Unions (WOCCU) and best practices of jurisdictions with well-developed credit union sectors. In addition, consideration was given to ensure that the proposals were consistent with the cooperative principles such as volunteerism, democracy, member equality and participation, co-operation, and education and training of members.