Kingston, Jamaica — In a surprise policy flip, the Bank of Jamaica has pulled the plug on a legislative clause that would have let the Jamaica Co-operative Credit Union League (JCCUL) act as the settlement hub for its 23 member institutions. Overnight, the nation’s credit-union sector—representing roughly a third of Jamaica’s population and J$190 billion in assets—found itself funneled back into the very commercial-bank pipelines it was poised to bypass.
Contents
What the SACU Clause Would Have Delivered
| Function | Today | Under SACU (scrapped) |
|---|---|---|
| Payments Clearing | Must pass through commercial banks | Direct access to BOJ’s RTGS rails |
| FX & Cheque Processing | Bank intermediaries collect fees | Credit-union league processes internally |
| Liquidity Sharing | Informal, bilateral | Formal “credit-union-for-credit-unions” model |
Why the Reversal Matters
- Competitive Neutrality – Commercial banks control J$2.6 trillion in assets. Denying credit unions equal settlement access entrenches that dominance.
- Cost to Members – Every detour through a bank invites additional fees, shaving margins from not-for-profit co-operatives.
- Global Best Practice – Canada’s Centrals, the U.S. Corporate CUs, and European cooperative banks already run identical models with regulator support.
JCCUL’s Strategy Playbook
- Lobby Blitz: A position brief is circulating in branches urging members to campaign MPs and Cabinet.
- Policy Draft-in-Waiting: JCCUL has offered to write the missing regulatory framework itself.
- Nuclear Option: If the clause isn’t revived, the league is prepared to seek a full commercial-bank licence—turning a work-around into a direct competitor for the incumbents.
Voices from the Movement
- Robin Levy, CEO, JCCUL (paraphrased): We already lend and take deposits among credit unions. The clause would simply plug us into the central-bank grid instead of paying banks a toll.
- Andrea Messam, President: We’re not asking for a favour; we’re asking for parity. Denying us settlement rights is like forcing a rival restaurant to serve through its competitor’s kitchen.
- Grass-Roots Sentiment: Branch managers report members ready to “show up in numbers” should the BOJ need persuading.
The Road Ahead
| Scenario | Likely Outcome | Impact on Sector |
|---|---|---|
| Clause Reinstated | Direct-settlement model revived | Lower costs, faster innovation, stronger rivalry with banks |
| Clause Remains Dead | JCCUL pursues banking licence | Possible new cooperative bank on the horizon |
| Compromise Framework | Partial access via phased rollout | Slower progress, but door remains open |
Bottom Line
For Jamaica’s million-strong credit-union community, the issue is bigger than one clause—it’s the right to compete on level terms. Unless the BOJ reopens the door it just slammed shut, the movement seems ready to build its own.
