sJU5 398im5WjrIJirbeG-Credit Union AGM Booklet 2024 - Flipbook - Page 21
21 Credit Union AGM Booklet 2024
e) Eziathamae Bodden also asked if deposits would be accepted from not-for-pro昀椀t
organisations whose members were not residents of the Cayman Islands. The CEO
explained that the Board would vet the entities from which deposits were received, and
she con昀椀rmed that only Caymanian-owned entities would be considered.
f)
Brian Morain referred to the CEO’s statement that interest rates for non-member deposits
would be competitive and opined that members received a 3% dividend. Therefore, it
would be unfair for non-members to be compensated at a higher rate. Mr. Morain stated
that the CEO did not propose an actual 昀椀gure. The CEO advised that interest rates on
昀椀xed deposits were higher than usual because interest rates in the market were also high.
She explained that the Credit Union was also lending at a higher interest rate.
g) Mr. Morain asked why deposits were being taken from non-members instead of members
if interest rates were high. The CEO clari昀椀ed that 昀椀xed deposits were already offered to
members at favourable rates.
h) Mr. Morain asked if preferential rates would be offered to non-members. The CEO
con昀椀rmed that non-members would be offered the same interest rate as members for
昀椀xed deposits. The First Vice Chairperson explained that the bene昀椀t to non-member
depositors was an attractive interest rate. In contrast, the bene昀椀t to the Credit Union was
a larger pool of money to lend to members while maintaining its liquidity ratio.
i)
During dif昀椀cult economic times, Clinton Jackson expressed pride in being a member of
the Credit Union – a pro昀椀table 昀椀nancial institution.
j)
Mr. Osbert Smith asked how the solution of accepting non-member deposits was
conceived, whether the Credit Union approached non-members 昀椀rst or it was
approached by non-members seeking to deposit money, and what prohibited those nonmembers from eventually becoming members. The CEO con昀椀rmed that persons could
only become members of the Credit Union if they quali昀椀ed pursuant to the Rules. She
noted that during the revision of the Rules, it was discovered that a provision was made
for non-member depositors in the Cooperative Societies Act. The Treasurer added that
by allowing non-member depositors, the Board sought to maximise the returns paid to
members.
k) Sheila Rankine asked when grandparents could open accounts for their grandchildren.
The CEO con昀椀rmed that grandparents could open accounts on behalf of their
grandchildren.
l)
Sheila Rankine asked if members could withdraw from their share accounts to fund 昀椀xed
deposits. The CEO clari昀椀ed that there were different rates for new and existing funds to
the Credit Union. The Second Vice Chairperson added that depositing funds into a share
account was for long-term savings, while competitive 昀椀xed deposit rates were offered for
short-term savings.
m) Seth Thomas Bodden voiced his concern that even if restricted to Caymanians, nonmember depositors could be Caymanians living overseas. Therefore, the Credit Union
needed to exercise caution when accepting deposits from non-members. The CEO
reiterated that non-member depositors would be restricted to persons living and working
in the Cayman Islands who were pre-approved by the Board.
