Zvi Galor

Expert in cooperative development

Stanly N'Jui of Kenya
Tripathy of India
Baslio Vanuaka of Fiji
Fitz of Jamaica
Oklahoma Food Retail Grocery Cooperatives
Michael (Computers) - Kenya



International Consultancy


Internet Publications






last update: December 25th 2003

Dear Zvi,

Hope I find you well. December and January are very busy periods for the credit union, hence, my delayed response.

The credit union movement in Jamaica has just gone through a period of adjustment to be accredited as a Credit union under the Jamaica Cooperative credit Union program. We had to undergo an extensive period of training for our staff and volunteers.

Under the program credit unions had to make the switch from shares to Deposit Shares maximum 20% and deposit over 70%. Capital from surplus to be 8-10%. Delinquency below 5%. Non Earning Asset 5% and below and Operating expenses below 8% of Average Asset. Due to our experiences with your training at the Institute we were the first to achieve this shiftmainly

Because we were able to adequately educate our staff volunteers and members.

We had to start with the Directors and other committees and then the staff and then the members so that we could get them to approve the relevant rule changes.

A number of credit unions are not making the adjustment and they are facing challenges to meet the present economic conditions. Having made the shift and improving our efficiency has helped us to be more flexible in a volatile interest rate market. Over the last year we grew in all the key result areas better then the credit union industry and above the financial industry.


Value of Shares and Return to member on Shares when leaving the Credit Union. We had used the Fixed Assets to identify the value of the member's shares in the credit union and as a growing society we had valued the minimum shares at about 25% more. Members are required to pay the minimum shares as a non withdrawable shares. Members can also have other voluntary shares as they desire. We have also introduced a long term deferred shares - cannot be withdrawn for a period of three years. Our shares non withdrable shares cannot be used as security for loans as we treat it as the members' equity in the business. We are at the stage where we paying the highest return on shares since it is the members risk capital.

We know that on a members withdrawal from the society they are paid shares + earnings. We are now working on the valuation of the shares so the member can get the value on withdrawal. We have some ideas. but your thoughts would help.



Fitz G. Rowe
St. Elizabeth Credit Union


top of the page