Government Senator Marc Bean said he's excited there's an opportunity for people with shared interests to begin credit unions.

Sen. Bean pointed out yesterday that black people who believe Bermuda's financial institutions are racist now have an opportunity to do something for themselves.

He spoke out as legislation giving the Bermuda Monetary Authority (BMA) supervisory power over the Bermuda Industrial Union's (BIU) credit union won approval in the Senate yesterday.

The BIU is currently the only union, but the legislation gives scope for others to be formed.

Sen. Bean pointed out that new credit unions could be launched to tie in with, for example, the Uptown Market Association and Economic Empowerment Zone in North Hamilton.

Attorney General Kim Wilson, who speaks on Finance in the Upper House, said the BMA watchdog would have the power to carry out on-site examinations and in some circumstances wind up a credit union which isn't complying with legislation.

Until now, the Finance Minister has had responsibility for credit unions, but it's now thought the BMA would be more appropriate because it already oversees bodies with similar functions, such as commercial banks, and insurance, trust and investment companies.

During yesterday's debate, United Bermuda Party Senator Jeanne Atherden stressed the importance of enforcing regulations to make sure the credit union is operating properly, particularly as people invest their own money in it.

Sen. Atherden said that since many investors may not be knowledgeable about finance, she is glad the BMA is overseeing things.

She noted that while there is only one credit union, the act now allows the BMA to grant more licenses and she is interested to see if people will take advantage.

Independent Senator Walwyn Hughes said it was "high time" for the legislation, and said it was imperative that credit unions are properly regulated.

Government Senator Walton Brown said he used to be in a credit union when he lived in Canada and they are helpful with expertise and financing as well as investments.

United Bermuda Party Senator Michael Dunkley said he is concerned that the law previously in place, the Credit Unions Act 1982 was not adequately enforced. Sen. Dunkley said the credit union has been prohibited from loaning more than 60 percent of its total assets, but has been doing that for years.

Now the new law is in place, he said he hoped that its standards and checks and balances would be adhered to.