BANK of Jamaica (BOJ) has updated its records to show that the island’s 25 credit unions had reported assets of $150.47 billion at December 31, 2021. The data show that the credit unions have been increasing investments at a faster pace than loans, even though savings growth has hit double digits over the last three years.

Asset growth, meanwhile, reflected a 9.7 per cent improvement in 2021 compared to total assets of $137.15 billion held at year end December 2020. Assets held last year were also 20 per cent higher than the $124.75 billion held in December 2019.

The community financiers ended the period 2019 to 2021 treading cautiously, growing loans at between three and six per cent over the last three years.

Loans and advances were $96.99 billion (net of provisions) at year end December 2021, up 5.84 per cent on loan balances of $91.63 billion (net of provisions) held at year end 2020.

Loans in 2020 represented a 3.48 per cent improvement on 2019, when loan balances were $88.54 billion.

The credit unions have been focusing more on investments than loans over the three-year period of review, moving more aggressively than in the area of lending.

In 2021 credit unions reported $6.2 billion in cash and placements, $23.69 billion in investments, and $12.18 billion worth of securities bought for resale.

In 2020 there were cash placements of $4.93 billion, investments of $20.31 billion, and securities bought for resale were $9.61 billion.

The asset profile in 2019 for the unions showed cash placements of $2.98 billion, investments of $17.04 billion. Securities bought in 2019 amounted to$6.35 billion.

The value of fixed assets have been improving incrementally. In 2021 fixed assets at year end were valued at $4.8 billion compared to 2020 when the unions reported fixed assets valued at $4.33 billion.

Liabilities

Savings in the credit unions have been growing at a much faster pace than loans. Credit union liabilities at year end 2021 were $150.47 billion and included $116.66 billion in members’ savings. Savings were a 10.37 per cent improvement on the year before.

In 2020 liabilities were $137.15 billion, including the savings of $105.77 billion, up 10.89 per cent over 2019 although this was the year when the pandemic hit Jamaica.

In 2019 liabilities were $124.75 billion, including members’ savings of $95.38 billion.

Under liabilities, credit unions owe debts to other financial institutions averaging $1 billion.

The credit unions reported in March that they are removing inactive members and moving to comply with POCA and the Data Protection Act.

Membership was reduced to 1,000,157 at December 2021 compared to 1,034,962 at December 2020.

According to the Jamaica Cooperative Credit Union League, the existing 25 credit unions all together, as at December 31, 2021, reflect a solvency level (all credit unions combined) of 124.07 per cent.

The credit unions say they have been reviewing and revising their organizational structures to ensure that all areas of operations are adequately staffed and in keeping with regulatory requirements.

A spokesperson told the Jamaica Observer, “The focus in recent years has been in filling the position for risk management and ensuring the appointment of a nominated officer in keeping with the POCA. Credit unions are also now making provisions to comply with the Data Protection Act, which may require new staffing needs.