The the national discussion of late has been about Canadian banks and C&W huffing FLOW. Soon it will be about the Solid Waste Tax as the year end deadline approaches. From one issue to the next, just like a rollercoaster.
BU is not surprised at the turn of of events. It is an open secret the Barbadian is a passive consumer. Why pick on banks when in every sector of the market the sellers and regulators tag team to pummel Barbadian consumers into submission.
When the global financial market collapsed in 2007/8, the government and regulator; the Central Bank of Barbados, referred to the banking sector as being resilient because of the heavy concentration of Canadian banks. Barbados benefited from the Canadian presence in the market we were told while other markets had to endure a volatile period of consolidation.
Again it is an open secret that Canadian interest make up more than 75% of the onshore and offshore banking system. Under the previous government we sold the Barbados National Bank (BNB), one of many local strategic assets handed to foreign interest for pieces of silver to pay for our conspicuous consumption habit. We cannot have our cake and eat it too. Barbados needs the foreign commercial banks now more than ever until our inept leadership come up with a medium term plan to wean our dependence. And until Barbadians see the value in supporting our own.
One of the economic pillars of the Barbados economy is international business. The offshore sector is heavily concentrated in Canadian assets. One of the reasons banks expand overseas is to serve the foreign operations of domestic companies. A good example is First Citizens Bank and Republic Bank and the proliferation of Trinidad business acquisitions in Barbados in the last decade. If the regulators struggle to regulate less influential entities in Barbados does anyone believe they have a ghost of a chance with the all powerful Canadian banks?
Barbados best chance to protect citizens was to maintain a significant interest in a commercial entity to intervene with financial products and services flavoured in the national interest. All of the banks, like any commercial business, in Barbados have ONE goal, to create value for shareholders. With BNB gone the best bet is to allow credit unions to compete on a level playing field. Not by establishing a credit union bank but by amending the regulation to permit similar services like chequeing accounts for example.
Barbadians must continue to shout their displeasure at what they see as bad practices by commercial banks. However we should take the time to examine what we need to do more effectively in order to flex our consumer muscle. We are too reactive and easily manipulated by the issues of the day. The fact that Barbadians have reacted to CIBC’s client mandate notification directed to customers whose accounts were opened PRIOR to 2007 is instructive. What is says is that customers of the bank who have signed on since 2007 have agreed to the terms and conditions now incensing the local public. And this is the point!
The fact that Horace Cobham, a former CIBC senior banker has come out to wax lyrically on the matter should be dismissed as political opportunistic poppycock. The fact that Senator Tony Marshall, retired Barclays banker, former talk show host, former chairman of the NIS under whose tenure a significant share of our NIS holdings in BL&P shares was sold for pieces of silver can also be dismissed. Is it not interesting we have to listen to such persons when they retire or are fired?
As consumers we have to power.
The blogmaster invites you to join the discussion.