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Establishing a National Bank, Pie in the Sky or …

Mia needs to keep airy-fairy long term ideas like inter-island ferries and a new national bank in her head and the discussion rooms until they are fleshed out and sources of financing are identified. What she needs to do is call in ministers Prescod and Duguid and find out what short and medium term plans…

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Mia needs to keep airy-fairy long term ideas like inter-island ferries and a new national bank in her head and the discussion rooms until they are fleshed out and sources of financing are identified. What she needs to do is call in ministers Prescod and Duguid and find out what short and medium term plans they have for garbage collection and transportation respectively – Bajan in NY

At 3 hrs:11 minutes of the video – Town Hall Meeting with Barbadians living in Brooklyn, New York #WeGatherin – Prime Minister Mia Mottley floated the feel good idea of reestablishing a national bank.

The BU family has discussed this matter extensively, credit unions have been trying for years to establish a credit union bank that of late has morphed to an alliance with Capita, a 100% owned company of the Barbados Public Workers credit union.

The blogmaster has a couple questions.

Section 21. of the Barbados Institutions Amended Act, 2018-51states:

Restrictions on business activities

41F.(1) Subject to this section, a license

(a) on a solo basis shall not incur exposures

(ii) incur an exposure to a person or group in an amount that exceeds 25 per cent of the capital base; or

There are other restrictions that should be of interest for inquiring minds.

How would the government of Barbados capitalize a national bank given its perilous financial state?

Successive Auditor General reports paint a picture of a poor financial governance culture. How would this prevailing culture influence the management of a national bank?

 

237 responses to “Establishing a National Bank, Pie in the Sky or …”

  1. NorthernObserver Avatar
    NorthernObserver

    @VC
    I can only observe. Prior to 2007, they had minimal international exposure, and were small-medium compared to the broader spectrum of all banks. They are (were?) very conservative. It was 2014(?) when a loan loss issue for CIBC in the Caribbean region, highlighted an unusually awful quarterly report. They have been gobbling up international operations at an astounding rate. I, and the broader market as reflected in their stock valuations, doubt they will escape future international issues as they have in the past.

  2. NorthernObserver Avatar
    NorthernObserver

    @Enuff
    “Northern
    So do what, sit back and twiddle thumbs? I say no!”

    If you call improving the garbage collection and sanitary standards, improving the local public transport, returning the legislated reporting requirements of SOE’s to being current, etc etc….. ‘sitting back and twiddling thumbs’…….I say yes!! Twiddle away.

  3. David Avatar
    David

    @Sargeant

    You may recall this article that made the rounds in 2017. The exposure for Canadian banks in the Caribbean is detailed in the report. It should secret why they want to high tail it.

    https://www.theglobeandmail.com/report-on-business/rob-magazine/perils-of-the-caribbean/article23199267/

  4. David Avatar
    David

    @Northern Observer

    Had the same thoughts. It makes a mockery of the fact the ECCB approved the sale of which Antigua is a member. His language is also not appropriate. What will foreign investors in Antigua and prospective think? You will also recall he was/is lead for Caricom on De-risking.

  5. Gabriel Avatar
    Gabriel

    Nuisance callers to Brasstacks have been asking where is the PM of Barbados,that she is missing in action,that she is always on some overseas jaunt.To the informed and observant she is representing,currently, the interest of her country and that of small vulnerable States at the podium of the UN not only in matters of climate change but the poisoning of human beings by big business food producers and big pharma as well as the killling of our youth by the mighty gun manufacturers especially in the USA where many years ago in the 60’s shotguns were designated “Sporting Goods” so that they can move internationally by air or sea undetected as “Guns” as they are.What a leap of imagination…overnight Guns became Sporting Goods.
    Btw has any one heard anything of Verla the supposed leader of the now Dead Labour Party?How come it’s taking so long to bring those guilty of corruption and plain thieving before the courts of this country?How come Boris is now the subject of a Police investigation by some watchdog unit for a matter relating to his days as Lord Mayor of London?How come Trumpf is being investigated for possible charges that might lead to Impeachment.How come politicians can do as they like with taxpayers monies in Barbados and not give an account with those found wanting being sanctioned?

  6. Hants Avatar
    Hants

    The Government of Canada will ” bail out ” the big Canadian banks when there is a crisis like in 2008 – 2009.

  7. Baje Avatar
    Baje

    Nuisance callers to Brasstacks have been asking where is the PM of Barbados,that she is missing in action,that she is always on some overseas jaunt.To the informed and observant she is representing,currently, the interest of her country and that of small vulnerable States at the podium of the UN not only in matters of climate change but the poisoning of human beings by big business food producers and big pharma as well as the killling of our youth by the mighty gun manufacturers especially in the USA where many years ago in the 60’s shotguns were designated “Sporting Goods” so that they can move internationally by air or sea undetected as “Guns” as they are.What a leap of imagination…overnight Guns became Sporting Goods.
    vvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvv

    MIA IS ENJOYING PUNCHING ABOVE HER WEIGHT AT THE TAX PAYERS EXPENSE.

    SHE HAS ADDED AT LEAST 50 POUNDS OF BODY WEIGHT IN THE LAST 16 MONTHS SINCE BEING ELECTED PM.

    WHILST THE MAJORITY WAIT ON MINIMUM WAGE INCREASE AND INTEGRITY & TRANSPARENCY LEGISLATION PROMISED IN FIRST 6 MONTHS.

  8. Hal Austin Avatar
    Hal Austin

    Have you listened to the UN speech and look at what policies have been introduced in Barbados over the last year. The president likes grand-standing with great unscripted speeches, gesticulating and preaching, punching above her weight and speaking for the entire Caribbean, even Cuba, but it smoke and mirrors.
    Listen to what she says about the march by young people in 139 countries a week ago and what happened in Barbados. IIt wazs nots even mentioned in the press. It was an ideal opportunity for teachers to use the day to discuss climate change in class.
    The president does not like details. She is an ideas-free zone. She finds it boring. She is a speaker, not a doer. She is a lawyer.
    By the way, where is the DLP? Do they have policies and programmes? What do they have to say about climate change?

  9. Enuff Avatar
    Enuff

    NO
    So because the country is awaiting garbage trucks, no other issues should be considered? I remain confused. 🤣🤣🤣

    Hal
    Who says it is a replacement? Many in the UK don’t own a chequing account, don’t see cheques and haven’t been inside a bank for years and seldom use an ATM. Many use Monzo too.

  10. Hal Austin Avatar
    Hal Austin

    Many people in the UK do not even have bank accounts. What is the point you are making.

  11. NorthernObserver Avatar
    NorthernObserver

    @Enuff
    https://www.facebook.com/watch/?v=1031437507057386
    that was January 2019? It was not me who said ‘2 plus 2 and then another 3 by the end of next month’.

    So “awaiting” means? Seems odd that between July’18 and Jan 02’19 (6 months) 2 trucks could be ordered and delivered, and now a further 9 months on, how many more have arrived?

    What other topics of substance and measurement would you like to embark on?

  12. WURA-WAR-on-U Avatar
    WURA-WAR-on-U

    “The president likes grand-standing with great unscripted speeches, gesticulating and preaching, punching above her weight and speaking for the entire Caribbean, even Cuba,”

    all bullshit and hot air…anything to avoid reality and the trainwreck they all created…and now can’t run far enuff away from.

  13. Hants Avatar
    Hants

    The Mitsubishi Fuso Truck and Bus Corporation is a manufacturer of trucks and buses. It is headquartered in Kawasaki, Kanagawa, Japan. Currently, it is 89.29 %-owned by Germany-based Daimler AG, under the Daimler Trucks division

  14. Hants Avatar
    Hants

    Commercial banks have signalled they are unlikely to accept one cent of money associated with the sector’s various activities, warning that doing so would jeopardise their correspondent banking relationships overseas.

    https://www.nationnews.com/nationnews/news/241990/banks-credit-unions-accept-ganja-money

    Canada has a medicinal and recreational cannabis industry.

  15. David Avatar
    David

    @Hants

    Here is another link.

    https://business.financialpost.com/cannabis/why-canadian-banks-remain-cool-to-the-red-hot-cannabis-sector

  16. Sargeant Avatar
    Sargeant

    @David

    Its simple as long as the use of marijuana remains a crime at the Federal level in the US, Banks are going to be cautious in their dealings with companies associated with the product.

    Everyday Canadian residents are still being denied access to the US if they admit to using the product or even using derivatives of the plant e.g. medicinal marijuana.

    https://www.cbc.ca/news/politics/tasker-cbd-oil-us-border-lifetime-ban-1.5252479

  17. Hants Avatar
    Hants

    OK NEXT !!!!!

    Developers of the Hyatt Centric Hotel just outside Bridgetown are getting closer to breaking ground for the multimillion-dollar high-rise project.

    https://www.nationnews.com/nationnews/news/241989/hyatt-progress

    dat artist impression look nice doh. Look like a 13 or 14 story building in the middle.

    .

  18. Hants Avatar
    Hants

    You can visit YouTube.

    “Harold Melvin & The Blue Notes – Ain’t No Stoppin Us Now”

  19. NorthernObserver Avatar
    NorthernObserver

    very different from original Centric design

  20. Hants Avatar
    Hants

    “Agriculture Minister Audley Shaw says Jamaica will be partnering with the Harvard International Phytomedicines and

    Medical Cannabis Institute (HIPI) in the United States on initiatives aimed at improving the country’s competitiveness in

    the global cannabis industry.

    https://www.nationnews.com/nationnews/news/241984/jamaica-announces-cannabis-partnership-harvard-institute

  21. Hants Avatar
    Hants

    @ NorthernObserver,

    The site got bigger so the building foot print was increased.

  22. SirSimpleSimonPresidentForLife Avatar
    SirSimpleSimonPresidentForLife

    @GabrielSeptember 27, 2019 10:24 AM “India is providing funding to Caricom is not to be celebrated.That poor azz nation is a divisive force in the Anglophone Caribbean.Witness the tribalism in Guyana in particular and in Trinidad where even their stupid sounding music should be banned from the Caribbean airwaves.”

    You want to ban another nation’s music because in your opinion it is stupid sounding?

    Who made you a ruler and a judge over the music of 1.3 billion people?

  23. SirSimpleSimonPresidentForLife Avatar
    SirSimpleSimonPresidentForLife

    Hal AustinSeptember 27, 2019 12:46 PM “every bus conductor has ideas about finance.”

    Are a bus conductors ideas about finance any less legitimate than a journalist’ ideas about finance?

  24. SirSimpleSimonPresidentForLife Avatar
    SirSimpleSimonPresidentForLife

    @TheOGazertsSeptember 28, 2019 9:27 AM “I cannot take my own advice as my wife gets angry and call me names if I try to let it mellow.”

    I am always solution focused.

    Use a different bathroom from the one your wife uses. If you keep the door closed always, she won’t even know what is going on in there. Flush once every 24 hours.

    May you two live happily ever after.

  25. David Avatar
    David

    Do you ever remain on topic just once Simple?

  26. WURA-WAR-on-U Avatar
    WURA-WAR-on-U

    Lawson…ya better leave ya CBD oil at home when crossing the border or ya screwed for sure..lol..those waivers to return to US are mad expensive..

  27. Hants Avatar
    Hants

    Ok back to the topic.

    The patriot in me says Barbados after independance should have a Barbadian owned bank and control over its banking system.

    Given that all the banks are foreign owned, does the Central Bank of Barbados have enough control over the banking system in Barbados that owning a commercial bank is not necessary.

    Help me out Vincent Codrington.

  28. SirSimpleSimonPresidentForLife Avatar
    SirSimpleSimonPresidentForLife

    @DavidSeptember 28, 2019 9:38 AM “You are saying the approach by the Central Bank under Worrell to entice savers to buy saving bonds was an incorrect approach?”

    YES. Especially in the circumstances which prevailed then and now.

  29. SirSimpleSimonPresidentForLife Avatar
    SirSimpleSimonPresidentForLife

    @SargeantSeptember 28, 2019 10:02 AM “Tell “Enuff” that the people like bricks and mortar, good luck trying to wean Bajans into primarily online/direct banking which are a staple of Challenger banks.”

    I am not sure that this is true. I believe that I heard a report recently that First Caribbean has said that 100% of their Barbados customers use mobile and or online banking. (at least sometimes I believe)

    Bajans are quite an adaptable people. (I don’t know neffen ’bout accounting, banking, economics/finance but I do know a fair bit about human behaviour)

    Our institutions largely dominated by elderly men, less so.

  30. NorthernObserver Avatar
    NorthernObserver

    @SS
    the issue is less about the users themselves, than what is referred to as the ‘back end’ systems. The technology which makes a transaction appear seamless. It is of no use signing on to a new financial provider, which has no/minimal physical presence, unless the majority of your needs can be satisfied via a digital method.

  31. SirSimpleSimonPresidentForLife Avatar
    SirSimpleSimonPresidentForLife

    @EnuffSeptember 28, 2019 3:19 PM “Many in the UK don’t own a chequing account, don’t see cheques and haven’t been inside a bank for years and seldom use an ATM. Many use Monzo too.”

    None of my Bajan children, all over 25 but under 40 own a chequing account either, have never had a “bank book”, may not even know what a “bank book” is, rarely use ATM’s, and haven’t gone into a concrete bank for years.

    Bajans are a highly adaptable people.

    I remember when Bajans adapted and stopped smocking. When my youngest was about 8, he tried to describe smoking which he had never sen. He described it as “the person had a firestick in his mouth”. The youth had NEVER heard the word cigarette, nor the word “smoking.”

    I don’t believe that the grands know the word “cigarette” “smoking” or “bank book” either.

    Bajans are a highly adaptable people.

  32. Vincent Codrington Avatar
    Vincent Codrington

    @ Hants at 12 :32 PM

    Between the MoF and the CBB there is enough legislative power to give directions to all banks and other financial institutions in Barbados. They were doing so before the advent of BNB and after.
    The Banking and Financial system of Barbados can only be regulated by the Barbados’ Authorities. I think if there is a need based on national pride a new bank should be independent and be in the Private Sector.

    Are you prepared to take the risks.The GoB purse does not need another suckling.

  33. Miller Avatar
    Miller

    @ SirSimpleSimonPresidentForLife September 29, 2019 1:09 PM
    “Bajans are a highly adaptable people.”
    ++++++++++++++++++++++++++++++++++++++++++++++++

    Which “Bajans’ are talking about? The ones living in the Diaspora?

    Are these the same “highly adaptable” Bajans who continue to form such long queues of ‘chupsing and grumbling’ wimps inside the banks with snake-like lines outside the same banks and credit unions so early in the mornings even before the doors are opened?

    If only these same ‘modern’ technologically-savvy Bajans could transfer their same ‘highly adaptable ways’ to their disposal of their garbage what a beautiful little island Barbados could return to be.

    When Bajans like you with their lawns and ‘backyard’ gardens stop putting their organic kitchen waste into their collection bins to remain in a state of putrefaction for days and even weeks then you could speak about adaptation of the Bajan species to the reality that the SSA workers of today are human too, and not ‘Scavengers’ as you lot like to refer to them.

    Why is ‘Composting’ such a dirty filthy ‘word’ among black Bajans?

  34. Hal Austin Avatar
    Hal Austin

    The Tories, the party of austerity, has announced a massive infrastructural spend today. Is this the official end of the nonsense of austerity? Is Mottley listening?

  35. WURA-War-on-U Avatar
    WURA-War-on-U

    That national bank will be the family vehicle…to ROB EVERYONE.

    Stay clear.

    Remember how the last national bank ended, both governments stole too much and sold out YOUR BACKSIDES.

  36. Dullard Avatar
    Dullard

    https://barbadostoday.bb/2019/10/05/six-months/

    Barbadians have gone through the worst of the austerity period under the homegrown International Monetary Fund-backed economic restructuring programme, BERT, the Government’s chief economic adviser has declared.

    Professor Avinash Persaud promised that this fiscal year, which ends next March 31, will have been the toughest under the IMF-funded Barbados Economic Recovery and Transformation programme….

  37. Mariposa Avatar
    Mariposa

    Persaud not telling bajans what they have already know and continues to experiece
    Barbadians were sold a bowl of “”Hope soup” but after eating found out that the soup made them sick

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