Black_Adder
Registered User
- Messages
- 153
If you needed proof that the Central Bank hidden agenda on Credit Unions was to get rid of them then look at the latest in a shed load of regulations.
"..PART 2 RESERVES Reserves Perpetual in Nature and Available to Absorb Losses
3. (1) A credit union shall ensure that all reserves held in accordance with, and for the purpose of, this Part and section 45 of the Act are: (a) perpetual in nature; (b) freely available to absorb losses; (c) realised financial reserves that are: (i) unrestricted; and (ii) non-distributable. (2) For the purpose of paragraph (1), any instrument classified or contributing to a reserve shall, in order to be eligible: (a) not be secured or subject to a guarantee which enhances its seniority; (b) be permanent and without an obligation for repayment of principal; (c) have no preferential distribution rights; (d) rank below all other claims in the event of a liquidation; (e) qualify as a reserve for accounting purposes.."
Debentures are a form of capital provided for under the 1997 Credit Union Act. Why should Debentures if ever issued not be secured on an asset such as premises of the Credit Union? This is another deliberate and senseless restriction put in place by somebody intending to exclude workable solutions.
The mindset of the Central Bank on the 10% Regulatory Reserve Ratio - to remind people is against ALL assets regardless and out of retained profits - lacks any international credibility - and is the tool which the Central Bank use to artificially get rid of a credit union below 7.5%.
The reality is that the Central Bank are open to challenge on this and what boggles the mind is there cannot be anybody of substance challenging the author of these regulations or at least this part of them. It shows how a Bully works - pick on the small guy - and compare it to how the Central Bank deal with conduct issues on banks relating to Trackers that in terms of abuse is similar to ..the Church.
"..PART 2 RESERVES Reserves Perpetual in Nature and Available to Absorb Losses
3. (1) A credit union shall ensure that all reserves held in accordance with, and for the purpose of, this Part and section 45 of the Act are: (a) perpetual in nature; (b) freely available to absorb losses; (c) realised financial reserves that are: (i) unrestricted; and (ii) non-distributable. (2) For the purpose of paragraph (1), any instrument classified or contributing to a reserve shall, in order to be eligible: (a) not be secured or subject to a guarantee which enhances its seniority; (b) be permanent and without an obligation for repayment of principal; (c) have no preferential distribution rights; (d) rank below all other claims in the event of a liquidation; (e) qualify as a reserve for accounting purposes.."
Debentures are a form of capital provided for under the 1997 Credit Union Act. Why should Debentures if ever issued not be secured on an asset such as premises of the Credit Union? This is another deliberate and senseless restriction put in place by somebody intending to exclude workable solutions.
The mindset of the Central Bank on the 10% Regulatory Reserve Ratio - to remind people is against ALL assets regardless and out of retained profits - lacks any international credibility - and is the tool which the Central Bank use to artificially get rid of a credit union below 7.5%.
The reality is that the Central Bank are open to challenge on this and what boggles the mind is there cannot be anybody of substance challenging the author of these regulations or at least this part of them. It shows how a Bully works - pick on the small guy - and compare it to how the Central Bank deal with conduct issues on banks relating to Trackers that in terms of abuse is similar to ..the Church.