Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Jamaica CUs studying development banks fee proposal
KINGSTON, Jamaica (4/14/09)--Jamaican credit unions are studying a proposal offered by the Development Bank of Jamaica (DBJ), which refused their request to increase loan spread and instead proposed credit unions raise their fees on the loans. Jamaica Cooperative Credit Union League General Manager Glenworth Francis said the issue is not settled (Jamaica Gleaner Online April 12). DBJ distributes loan capital through approved financial institutions and stipulates that the interest rate to end users can be no more than 3% higher than its rate to the institutions. Credit unions, however, say they need about an 8% spread; otherwise it is unprofitable to distribute the DBJ funds. Instead of raising the spread, DBJ proposed that credit unions add fees to the loans to cover their costs. Discussions about the spread surfaced last year when credit unions began opting out of a $1 billion program to funnel funds to small- and medium-size enterprises, saying the cost to administer the funds were 5% higher than the allowed spread, according to the article.


RSS print
News Now LiveWire
Large CU stress testing on the agenda for the April @theNCUA open meeting http://t.co/2TUcnmCmPi
8 hours ago
#FinancialLiteracyMonth Test your college financial aid knowledge @nasfaa http://t.co/xgrDmHaw8W
16 hours ago
Join @theNCUA #NCUAchat with @KenWortheyJr on April 23 from 11am to 12pm EST http://t.co/TnNmfFh4Nl #FinancialLiteracyMonth
17 hours ago
Maine's patent troll bill has become law. Read more in Monday in @NewsNowLiveWire
20 hours ago
Wash. DFI discusses serving legal marijuana businesses with @NWCUA http://t.co/3kw79HJUYF
20 hours ago