The Dominica Parliament has approved the Cooperative Societies Act, a new piece of legislation to strengthen the risk management of credit unions during a changing financial atmosphere.
The new law makes new provisions with respect to the registration, supervision, governance, operation and management of cooperative societies including credit unions.
Several areas are being addressed under the new act, according to Prime Minister Roosevelt Skerrit, including provisions to strengthen the safety and soundness, risk management and capitalization level of credit unions, facilitate increased access to a wider range of financial products, and quality customer services.
The legislation will make additional provisions for access to records, and for the direct supervision of cooperative societies, provisions for financial disclosure, and “an expanded range of interpretations and definitions, providing greater clarity to the legal procedures, without diluting international principles.”
Under the Cooperative Societies Act, the Ministry of Finance will be responsible for supervising credit unions.
Source: DBS News