The Bermuda Monetary Authority could have complete regulatory and supervisory responsibilities for the Bermuda Industrial Union Credit Union

The bill was tabled in yesterday's House of Assembly and could be debated as soon as Friday.

Finance Minister Cox said: "I am pleased to have tabled the Credit Union Act 2010 in the House of Assembly. This legislation is extremely important in that it will modernise and strengthen Bermuda's regulatory framework for credit unions.

"This framework will provide an appropriate set of financial management disciplines for the credit union to maintain, while also allowing the creation of shareholder wealth for its members.

"In summary, the new legislation will transfer complete regulatory and supervisory responsibilities for credit unions to the Bermuda Monetary Authority and this is consistent with international standards which maintain that the agency that regulates financial institutions should supervise credit unions."

Ultimately, she said this legislation should assist in ensuring higher membership, savings growth and stronger financial performance of credit unions.

The BIU's Credit Union has 5,000 members, and is designed to give as many people as possible access to financial services.

Minister Cox said the new legislation would ensure that the unique characteristics of credit unions were not lost.

She added that it encapsulates principles contained within the model law produced by the World Council of Credit Unions and the International Credit Union safety and soundness principles.

The Ministry of Finance worked with the BMA and Credit Union to draft a bill that suited everyone's needs.

After the bill was tabled President of the BIU Credit Union, Graham Nesbitt, said the new legislation would help members of the union and that it reflects the People's Credit Union Bill and will meet the needs of the members in Bermuda.

The CEO of the BMA, Jerome Cox, said: "The Authority is very pleased that the work initiated last year to update the legislative and policy framework for credit unions in Bermuda has been completed. Upon approval of the legislation the Authority will implement the enhanced framework and will have direct responsibility for the regulation and supervision of any credit union established in Bermuda.

"The process has been both collaborative and productive, resulting in a framework that reflects high standards and best practice internationally for the supervision of credit unions, while being appropriate for the nature of the Bermuda market and the ultimate protection of depositors here."

Earlier this year it was revealed that loans granted by Credit Union had fallen by 40 percent and the organisation's surplus had dropped by more than $300,000.

According to the Credit Union's 2009 annual report, loans disbursed fell between 2006 and 2007.

The report, which included audited financial statements for those two years and unaudited financial statements for 2008 and 2009, also appear to show that the Union's surplus has fallen from $363,000 to $43,000.