but even taking out the energy sector, non - energy per capita gdp has almost doubled from around us $ 3, 500 to us $ 6, 000 currently. that is an extraordinary accomplishment. behind these macroeconomic statistics are important changes that are real. what are some of these changes? well, while the labour force has increased by about 100, 000, employment has increased by 140, 000, driving unemployment to the lowest level in decades. with the significant increase in personal incomes, more people are now aspiring to what two decades ago were considered to be middleclass trappings - like cars, foreign travel - and home ownership, which has increased sharply over the past decade. there have also been other important societal changes ; more young and middle - aged people are combining work and study ; small business or self - employment has become more widespread ; and young people are leaving home earlier to live on their own. ( yes, there is a downside, whereby too many of our youth fit into an “ at - risk ” category ). all these adjustments and improvements have put demands on personal financial management. to further complicate the picture, deregulation and financial liberalization have spawned a rapid evolution of our financial sector. as a result, credit cards which were once confined to a small segment of the society are now being aggressively marketed to the wider population by the commercial banks. customers are being bombarded to contract consumer loans once they have a secure job and their income could be channeled through the financial institution. rapidly changing lifestyles have forced the bulk of the population to open bank accounts, to use atms, to own credit and debit cards and generally to participate actively in the formal financial system. but with the diverse range of product choices, banking has become more complicated. the average consumer is now required to make complex financial decisions between fixed and variable rate mortgages, contract installment loans, choose from a range of checking accounts and select from any number of savings instruments. the net result of the rapid growth of the last decade is that personal consumption has risen substantially, and this is amply reflected in a significant growth in consumer imports. personal savings have not kept pace with the growth in incomes and consumer debt has assumed unsustainable levels. one aspect of this general problem, which is becoming very acute, is that with inadequate savings and pensions too many of our citizens are ill - prepared for retirement. ladies and gentlemen, as our economy evolves and develops, it is to be expected that

what you live and breathe every day. so if i may humbly say this, ladies and gentlemen, you do not need the governor of the central bank of trinidad and tobago to tell you what your relevance is to the economy of our country. accordingly, i would like to take the opportunity this afternoon to speak about issues related to the new proposed regulatory regime for credit unions, which is expected to come into effect in the coming year. • first, i will highlight why the proposed credit union regulatory regime will benefit your members and the entire credit union movement, paying particular attention to some of the areas of concern highlighted in your president ’ s message on page 7 of your 2013 annual report ; • second, i wish to speak about the proposed establishment of a protection fund for credit unions ; bis central bankers ’ speeches • finally, i will seek to address some lingering concerns of the national credit union movement surrounding the impending credit union legislation. prudential regulation of the credit union sector ladies and gentlemen, i now turn to prudential regulation of the credit union sector by the central bank. before i get into the substance of my address this afternoon and before you start to go into the information overload stage that we all get … let me start with what i like to call the latest and the greatest, that is, the most important point i want to leave you with today, and it is this : regulation of the credit union industry will benefit you and it will benefit the people you serve. regulation is needed and it is coming ; embrace it, don ’ t fear it. regulation will be your best tool for continuing to make every dream count. i know by now many of you would be familiar with the policy proposal document for the credit union bill which was done after consultation with stakeholders like yourself. this document is on central bank ’ s website and shows you exactly what is the basis for and how the new legislation will work. it is basically a blue print for the entire process. it tells you for instance the objectives of the central bank under the cua which are : 1. to determine the safety and soundness of credit unions and protect members ’ deposits and shares from undue loss ; 2. to supervise credit unions to determine whether they are in sound financial condition and in compliance with the act ; 3. to maintain confidence in and promote the stability of credit unions and by extension the financial system of trinidad and tobago. it is important you understand these three objectives as they explicitly tell you what our intentions are