1. CENTRAL FINANCE PURPOSE Manage liquidity on behalf of movement Such facility integral part of most developed credit union systems

2. TO DO WHAT Arrange inter credit union lending Gather and manage excess funds Provide short term loans and charge interest for them Provide access to other liquidity sources Provide other services

3. OTHER SERVICES Statuary depository for designated credit union capital reserves Access clearing system Provide payments and settlements Access Government Liquidity Funds

4. CENTRAL FINANCE STRUCTURES Mandated under credit union legislation Stand alone entity– CUSO Originated by and part of league Agency arrangement

5. GOVERNANCE Statuary Board League plus participants representative board Under auspices of league board Independent—CUSO board Agency agreement—board committee

6. GOVERNANCE Critical that standards and performance benchmarks agreed Performance level agreements negotiated Outside professional support Independent in decision making

7. CRITICAL TO SUCCESS Determine actual need and purpose for service Create Business Plan Secure buy-in from credit unions Deliver real benefits and value Establish risk appetite and management Decide on business Policies and Proceedures

8. MANAGEMENT OF FUNDS Attracting funds, marketing Lending expertise Management of investments Counterparty exposures, ratings Recoveries Returns/commissions/provisions Capital requirements if any

9. ISSUES FOR BELIZE MOVEMENT Is there an need for a CFF Level of participation expected What structure might be successful How to cover costs What research done to date Role of Central Bank Belize

10. REVIEW: Each cu B/S for available liquidity, investment terms, pledged savings The loan to assets ratios for each and aggregate for all credit unions Each cu’s business plan for projected savings, lending, investments, capital, surplus, liquidity etc.

11. Establish: Existing level of inter cu lending Does BCUL have templates available Could BCUL publish lists of cu with excess, and needing liquidity support Could BCUL act as inter cu Broker at small commission to cover costs Could BCUL have an agreement with bank(s) to provide additional liquidity as needed

12. ACTION Consider setting up a time bound Taskforce of BCUL and Credit Union representatives to examine these issues, data and the feasibility of establishing a Central Finance Facility and to Report with Recommendations.