Among financial institutions credit unions by and large have seen the faster growth in asset base over the last decade as the savings and loans institutions stand to surpass the collective assets of merchant banks.

A decade ago, credit unions collectively had assets of $7.6 billion but at the end of 2007 boasted an asset base of $44.3 billion, representing growth of 19.2 per cent per annum over the last ten years.

Over the same period commercial banks and building societies saw yearly growth of 12.4 per cent while merchant banks saw growth of 10.5 per cent each year.

The faster pace of asset growth has placed credit unions on the heels of merchant banks, which had $45.4 billion in assets as at December 31, 2007.

Credit unions, as a group made up of 48 entities, are still the smallest among financial institutions. Commercial banks had assets of $491 billion at the end of 2007, while building socities held $123.6 billion in assets.

The growth in credit union's asset base has been driven by loan growth over the years, increasing their stake of the loan market from a mere 5.4 per cent or $85 billion at the end of 1997 to 10.4 per cent or $298.6 billion.

Commercial banks have over the years maintained the lion's share - 65 per cent last year - of the loan market through its many credit offerings to clients, ranging from credit cards to corporate loans, while building socities primarily focus on mortgage issues.

Merchant banks hold the smallest share - 4.6 per cent - of total loans outstanding at the end of 2007, focusing instead on foreign assets which made up nearly half of their total asset base at December 31, 2007.

Ahead of the Bank of Jamaica's (BOJ's) move to take full assumption of supervisory responsibility for the sub-sector, credit unions have "generally embarked on plans to strengthen their systems and controls in preparation for licensing under the imminent Regulations," according to the BOJ's annual report for 2007.

The BOJ said it will continue to make onsite examinations of the institutions.

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