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Credit Unions in Grenada Show Resilience Amidst Economic Challenges
ST. GEORGE’S, GRENADA - The credit union sector in Grenada has shown remarkable resilience in the face of economic challenges, according to a report by the Grenada Authority for the Regulation of Financial Institutions.
Strong Growth in Total Assets
The sector’s total assets increased by 8% to reach $1.098 billion in 2020, up from $1.014 billion in 2019. This growth was driven by an increase in deposits, which rose by 10% to reach $934 million.
Key Statistics:
- Total Assets: $1.098 billion (2020), up 8% from $1.014 billion (2019)
- Deposits: $934 million (2020), up 10% from $848 million (2019)
Increase in Loans and Net Surplus
Loans also showed a significant increase of 12% to reach $844 million, while the sector’s net surplus improved, rising to $15.4 million in 2020 from $13.9 million in 2019.
Key Statistics:
- Total Loans: $844 million (2020), up 12% from $752 million (2019)
- Net Surplus: $15.4 million (2020), down $1.5 million from $13.9 million (2019)
Adaptation and Innovation
The report highlighted the credit union sector’s ability to adapt and innovate in response to changing economic conditions. “Despite the challenges posed by the COVID-19 pandemic, the credit union sector has demonstrated its resilience and commitment to serving the financial needs of Grenadians,” said [Name], Director General of the Grenada Authority for the Regulation of Financial Institutions.
Strong Capital Adequacy Ratio
The report also noted that the sector’s capital adequacy ratio remained strong at 14.5%, well above the regulatory minimum requirement. This reflects the credit unions’ sound risk management practices and their ability to absorb potential losses.
Conclusion
The credit union sector plays a critical role in the Grenadian economy, providing financial services to individuals and small businesses. With its strong balance sheet and steady growth, the sector is well-positioned to continue supporting economic development in the country.
Graphs:
- Figure 1: Total Assets Held by Credit Unions - 2016-2020
- Figure 2: Total Loans Held by Credit Unions - 2016-2020
- Figure 3: Total Deposits Held by Credit Unions - 2016-2020