The quantum of deposits that you see in Credit Unions and Commercial banks are not capital. They may at best be described as savings, maybe money, BUT NOT CAPITAL. These institutions are Financial Intermediaries, that may, according to their risk preference, transform them into loan capital. I note that one other high profile commentator makes the same mistake
Understandably the government’s public relations machinery is working overtime. Any iota of information is being shared with the citizenry that will cloak positively the government. The role of propaganda should not be underestimated how it controls the narrative and by extension the minds of a people. It gives the blogmaster no pleasure to remind the BU family propaganda was used to good effect by the Nazi Party with Hitler appointing a minister of propaganda. This is an extreme example to emphasize the importance governments will place on the function of controlling and ‘sanitizing’ information. It is left to an informed citizenry to promulgate a countervailing view.
The quote above reminded the blogmaster of a feel good message Minister of Small Business, Entrepreneurship and Commerce, Dwight Sutherland has been repeating without challenge in recent months. To quote a media report:-
Our Government, we have started talks with non-governmental entities, international agencies, whether the loans will be secured or non-secured we recognised that Fund Access has a number of clients who are knocking on the door. In 21 years of operations, Fund Access has approved over $64 million to 1,500 clients (Blogmaster’s emphasis).
The minister’s message was supported in the same media report by Chairman of Fund Access David Simpson:-
We have also approved an additional 138 loans, and refinanced a further 266, all accounting for job creation of just below 2,400 jobs. He also pointed out that they had surpassed $6 million in disbursements for the calendar year 2018, having approved and disbursed in excess of $5.9 million in loans and created 144 jobs.Up to June 30, the Fund has disbursed $2.4 million to 51 clients and created 68 jobs in 2019. Is is only the blogmaster waiting for more relevant information? How about breaking out the loans by sector, size, date loan given linked to the date same business was established. Important is the failure rate i.e. number of businesses receiving loans and whether they are still in business. What is the rate of delinquency etc etc etc. Some of us prefer our leaders to share a level of analyses with the public that will inform about how our tax money is working or not for that matter.
If the small business or what is commonly referred to as the SME sector is regarded as important, those leading the sector must up the game. We see the same tired faces, have to listen to the same tired narratives and expect that miraculously the sector will emerge to save us from ourselves.