We recognize that these non-core activities provide a supplementary source of earnings for credit unions and provide additional services to the credit union membership. However, these non-core activities represent a potential drain on the limited managerial capacity and expertise of many credit unions. Moreover, these non-financial activities pose risks that are outside the supervisory responsibility of the Central Bank.
There are many other variables to be taken into account, such as the timing of adjustment, the treatment of maintenance and renovation, the extent of the owners’ resources, whether there are marketable assets that might be sold, etc. As everyone knows, small business makes a disproportionally large contribution to employment, compared to large businesses, in all economies, including our own.