Est.2007

Barbados Underground

Bringing News and Opinions to the People

Banner promoting anonymous crime reporting with a phone and contact number 1 800 TIPS (8477), featuring the Crime Stoppers logo and a QR code for submitting tips.

Establishing a National Bank, Pie in the Sky or …

← Back

Your message to the BLOGMASTER was sent

CONTACT THE BLOGMASTER ONLY

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?

 

Discover more from Barbados Underground

Subscribe to get the latest posts sent to your email.

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

  1. Hal Austin Avatar
    Hal Austin

    @ Baje

    You are right. After 16 months this government should have spelt out its programme – social, economic, cultural. BERT now seems like a massive excuse not to do anything.

  2. Greene Avatar
    Greene

    Miller

    you have this unique way of conflating thoughts and meshing unconnected issues into a word salad of scatological outpourings

    but lets move on.

    i am sure Hal could expound of his post office bank suggestion

  3. Greene Avatar
    Greene

    Miller

    you have this unique way of conflating thoughts and meshing unconnected issues into a word salad of scatological outpourings

    but lets move on.

    i am sure Hal could expound on his post office bank suggestion

  4. Piece the Legend Avatar
    Piece the Legend

    @ Mr Vincent Codrington

    De ole man notes that while you said the same thing I said AND THE SAGE ANNUNAKI reiterated what I am also speaking to THE HONOURABLE BLOGMASTER did not call your comments nuisance remarks.

    you said and I quote

    “…With all of this information ,where is the logic for a GoB owned bank?

    What unfulfilled niche will it serve?

    Just asking to complete my understanding…”

    and the Sage Annunaki said AND I QUOTE

    “…The mere fact that you tried to delink the illegal business of money laundering from criminal trading activity only tells us you are one of a kind type of law–exposed ex-police officer who is still believing in himself to be a sleuth of incomparable intellect and supreme competence…”

    But de ole man has concatenated both these issues AND POINTED MY FINGERS AT HIS HERO MUGABE so he has called my remarks “nuisance comments”

    But soft, for yet a little bit longer, AND HE WILL SEE MY NUISANCE REMARKS heheheheh

  5. WURA-WAR-on-U Avatar
    WURA-WAR-on-U

    What was once hidden from Black Bajans, is ONLY NOW being made available.

    https://caricom.org/documents/16434/marijuana_report_final_3_aug_18.pdf?fbclid=IwAR0fOV3wLi8hBF8StCjGoaHYzSV9w8K_8iRUDbVm1I02Hth9ip3BVwDUSmQ

  6. John A Avatar
    John A

    So which coming first the Hotel corridor stretching from hither to thither, the BNB MK2 or snow here for Xmas?

    Pick anyone of the 3 as they all got the same probability of occurring in the real world environment we live in.

    I can’t understand why every PM THAT go overseas got to open dem mout and let anything fly out!

  7. Baje Avatar
    Baje

    @ Hal

    I am saddened that the majority who voted 2018 for change are among the poorest both unemployed and employed on the island who were mislead for their votes.

    I live a very, very comfortable life.

    However it pisses me off how our own Black people primarily Politicians take advantage to further their own nests and pockets to the detriment of most.

    For sure the working poor in Barbados of which there are large numbers would never benefit from a National Bank as they still be required to pay fees etc.

  8. Piece the Legend Avatar
    Piece the Legend

    The island ferry, MINUS THE TRANS SHIPMENT OF DRUGS AND ILLEGAL (did someone say Herbert?) is a good idea

    Mostly because heheheheh….

    The challenge with Mugabe is that, like with medicinal marijuana EVERYTHING THAT SHE TOUCHES ,becomes toxic like the school meals syrup.

    Honourable Blogmaster I wonder what you going do when de ole man publish de Swiss Bank Account numbers?

    Heheheheh

  9. Hal Austin Avatar
    Hal Austin

    @ John A

    Every Xmas we used to throw marl around the house and pretend it was snow.

  10. John A Avatar
    John A

    @ Hal

    All I can say is they got alot of pretending going on then. Like we pretending we got the money to capitalise a bank now or that the IMF would even entertain it.

  11. Sargeant Avatar
    Sargeant

    BT used to be a prime promoter of upgrading Credit Unions to be full service Banks, one of the Credit Unions major issues is their lack of to use Enuff’s words “technological savvy” BTW “Enuff” is now embracing his nemesis’ HA’s ideas re Post Office Banks (Enuff is also dancing to the Mia’s tune of “Follow the Leader, Leader, Leader, Follow the leader” etc.

    So, if we have Credit Unions why reinvent the wheel?

  12. Hal Austin Avatar
    Hal Austin

    @ Sargeant

    You can buy in technology. Firms do that every day. We can capitalise the banks with Bds$50m of our$1bn reserves and pay all 25000 public sector workers through a Post Office current account. What they do with the money is their business. I have spelt it out. It is like taking candy from a baby – so simple that we are having a row on BU about it.

  13. WURA-WAR-on-U Avatar
    WURA-WAR-on-U

    What was once hidden from Black Bajans, is ONLY NOW being made available.

    Make no mistake ….all the whites, bajans and otherwise, the indians, the syrians etc…all know about the decrininalization of marijuana in the Caribbean, everyone except the black majority who fund the island.

  14. Enuff Avatar
    Enuff

    Northern et al
    Who is trying to muddy the water? I asked a simple question and I actually think my interpretationis correct; furthermore, indigenous need not mean a national bank. The response that I should get the SOEs to publish annual reports is utter nonsense. Stupse! Maybe it is better discussing whether there’s opportunity for a digital/online ‘challenger’ bank like I raised, rather than trying once again to locate me within the bosom of the government. It is tiring.

  15. Hants Avatar
    Hants

    How many Canadians are managing the Canadian banks in Barbados ?

    I have very little knowledge of banking and what is required to create a bank but from the time I was walking up Broad Street to go to school I always saw Bajans working in banks.

    As an adult during the few years I was ( 6 year returning national lol ) in Barbados there were Bajans working in the banks some of whom were Branch managers.

    Can anyone tell me why Bajans are good enough to be employees of foreigners but not of Barbadian owned entities ?

    Dear PM, why don’t you make a deal with one of the Canadian banks since they are possibly intending to sell or leave.

  16. John A Avatar
    John A

    The government is in no position to pay Scotia what they would want to sell the entity known as Scotia Barbados. Plus will we give it to the same mentality of worker to run that can’t implement a new customs program, bus route or garbage collection and expect different results?

    Stop living in La La Land and understand the reality we are in. Right now the IMF dictates the rules here and government “attempts” to carry their wishes out.

    In this reality of stringent financial management by the foreign watch dogs, you really think you will see a national bank opened?

    Left out the Koolaid talk and think for yourselves here folks.

  17. David Avatar
    David

    @John A

    You comment makes sense. In this world of problems with correspondent banking and other challenges, it would be better to buy a bank than build from scratch. Looks like Gaston maybe on to something.

  18. William Skinner Avatar
    William Skinner

    @ John A
    @ Hal

    We have pretenders and politicians suffering from amnesia.Cool aid drinking has multiple effects.

    The Duopoly Rules

  19. John A Avatar
    John A

    @ William
    @ David

    To he honest this topic isn’t even worthy of serious discussion in our position. Forget the fact the IMF would not approve it, are you trying to tell me now a government with a credit rating of double junk and a record of default with no intention of settling with foreign creditors, not wants to open a bank? Who they going trade with Bajans only on the rock?

    Lord I deading here with laughter just thinking about it! Then again we could send Persaud to go and try to convince the authorities that we good and don’t worry about it cause he say so!

  20. David Avatar
    David

    @John A

    What about the credit union bank? What is their plan to acquire correspondent banking relationships? Is COB on board?

  21. WURA-WAR-on-U Avatar
    WURA-WAR-on-U

    Yall are not seeing what is happening, i keep trying to show you the connection and you keep missing it….look for the connections…

    “The House of Representatives passed a standalone marijuana reform bill for the first time in history on Wednesday.

    The chamber advanced the legislation—which would protect banks that service the cannabis industry from being penalized by federal regulators—in a vote of 321-103”

  22. WURA-WAR-on-U Avatar
    WURA-WAR-on-U

    Marijuana banking is now en vogue.

  23. John A Avatar
    John A

    @ David.

    I would love to see the credit unions be able to offer full banking services to all. Thing is though it would probably be easier for all of them to get together and try to buy a local banking interest already established. The challenge here though is can the major credit unions work together in a share holding arrangement to take on such an undertaking.

    You know how we are with “who going be the boss and call the shots.”

  24. Mariposa Avatar
    Mariposa

    Hot air along with an exercise in futility
    Another song and dance by Mia to take the real problems which are happening away from media and public glare
    Today the murder count increased
    But here is some good news
    A petition has made way across social media exposing barbados unhealthy sanitation enviroment
    The petition is collecting signatures which obviously would be given to Prescod with a demand to clean up barbados filthy streets

  25. Vincent Codrington Avatar
    Vincent Codrington

    David Bu at 4:42 PM

    What functions correspondent banks perform(ed) that are being taken over or are now irrelevant in the new evolving financial landscape?

  26. William Skinner Avatar
    William Skinner

    @ David
    @ John

    Many many years ago, I was sent a recording of a politician from the Duopoly addressing a Bajan overseas gathering. I was absolutely amazed that I did not realize that politician was speaking about Barbados.

    The Duopoly Rules

  27. Gabriel Avatar
    Gabriel

    Mia just came on the scene and making some significant development moves in Barbados and the Region

    *Ferry Service long overdue since the schooner days
    *Joint oil exploration project with Trinidad and Tobago
    *Upgrade Caricom functions to include a place at the table for Trade Unions and Private Sector
    *Upgrade and strengthen the Region to present a united front to review the development funds barrier arbitrarily placed by loan agencies in the light of the devastating effects of climate change.
    *Reintroduce a National Bank of Barbados with branches in UK,US and Canada to,offer goods and services to Bajans,bajan businesses and the diaspora
    *Improve the Tourism Sector especially along the South to West coasts
    *Improve the Water Supply devastated in 1989 by a clueless Sandiford and made worse by a thieving Stuart administration that only the DLP know how to do well….thieving .

  28. WURA-WAR-on-U Avatar
    WURA-WAR-on-U

    I was extremely proud to see Bajans finally telling a government minister straigt up that they don’t trust them.

    That sentiment now runs even deeper, since yesterday.

  29. John A Avatar
    John A

    @ william

    I can only smile at your comment. Sometimes you got to wonder how much of what they say they actually believe themselves.

    It would be nice if they could focus on reality and at least pick up the garbage and get water to those suffering in the rural areas. Maybe after doing that they could return then to their delusions of grandeur hopefully keeping their pipedreams to themselves.

  30. David Avatar
    David

    @Vincent

    If you mean that the way business is done continues to evolve this is so. However until it settles on an standard that is globally accepted the establishment of traditional banks continue to call the shots.

  31. Mariposa Avatar
    Mariposa

    Have anybody seen Mia in barbados recently
    Asking for a friend

  32. Mariposa Avatar
    Mariposa

    With a new sheriff in town called the IMF Mia would have to spend the next give years digging in dry land slong with sending trial ballons in the air behind smoke mirrors
    She said barbados broke
    She owes the IMF and the external creditors
    So this notion of silly utterances would continue from Mia mouth as long as their is the likes of a BU audience to listen and engage

  33. Mariposa Avatar
    Mariposa

    Btw still awaiting word of the 500hundred thousand matching funds govt “supposedly” says it would give as aid to the Bahamian people
    Also did govt find a housing solution for the squatters
    What happened to the 20 acres and a mule she promised the squatters
    My thinking being the squatters and the Rastafarian community might have to fight that solution out during midday hours

  34. William Skinner Avatar
    William Skinner

    The truest thing I have heard from the Duopoly in the last forty years is that one of them is not Jesus.
    At least one of them was the Lord. Whenever Barrow did anything he used to say: The Lord giveth and the Lord taketh. They are a highly religious group. You can break the treasury and be given a Come to Jesus moment.

    The Duopoly Rules

  35. Mariposa Avatar
    Mariposa

    The govt promised new garbage truck which have not arrived in barbados
    Meanwhile barbados have a PM showing off her ignorance out of political grandeur and pretense
    Pretending that barbados is financially equipped to match 500hundred dollars to an aid program
    Meanwhile Prescod balls are hurting because of the many kicks he received because of his silly utterances
    Oh Jesus

  36. William Skinner Avatar
    William Skinner

    It should be recalled that when the credit union movement started to show real movement, the Duopoly wanted to rein it in. We have short memories . There was plenty talk about regulating them and the entire effort was to ensure that the credit movement did not get too big for its boots. There is a lot of bogus partisan clap trap in this discussion.
    Sir Grantley Adams once said that Barbadians have short memories.
    As WARU often states the intention of the Duopoly is to enrich itself and its lackeys. I have long dismissed the kool aid drinkers on BU as mere loudmouths who have no intention of ever putting Barbados first.
    With progressive financial and social policy, the Duopoly could have made the credit union movement, an engine of economic enfranchisement. The tourism industry could have been another vehicle for true enfranchisement.

    The Duopoly Rules

  37. John A Avatar
    John A

    @ William

    I think the credit unions as a combined group could in fact look at buying one of those banks who wish to depart our shores.

    If I was them though I would look to do it as a group with each credit union having a stake in terms of shareholdership in the bank. They could then say offer 30% to local private investors thereby spreading the risk across a wider ownership base.

    It would be an interesting development if something like this ever happened in the banking sector for sure.

  38. SirSimpleSimonPresidentForLife Avatar
    SirSimpleSimonPresidentForLife

    @BajeSeptember 26, 2019 4:17 AM “What has become of Stephen Archer’s money? The name Stephen Archer.”

    I met Stephen Archer a few times when he did some work for our company, before his accident, and before he got his settlement. He was a talented young graphic artist. I met him again on boardwalk in Bridgetown some years later. He was using a wheelchair then, but still had both of his legs. But he was the same courteous, cheerful and handsome Stephen. I was surprised to see his obit in yesterday’s Midweek Nation, of Wednesday 25th September page 32. I trust that Stephen’s estate will be properly and quickly administered, and that unless he has said otherwise that the residue of his estate will go to his brother and his nephews.

    May he rest in peace and rise in glory.

  39. David Avatar
    David

    @John A

    How would the credit unions fund the purchase of a bank?

  40. SirSimpleSimonPresidentForLife Avatar
    SirSimpleSimonPresidentForLife

    Don’t know enough about banking to make a sensible comment, so I will refrain.

  41. Sargeant Avatar
    Sargeant

    I keep hearing about a lack of Correspondent banking services, perhaps someone can explain why Barbados is deficient in this area. The major Canadian Banks operating in Bim have their HO’s in TO and significant presence in NYC and London, surely these offices can facilitate any kind of transactions that originate locally.

  42. John A Avatar
    John A

    @ David.

    Well they sitting on billions and that would be a decision for their members and management. Remember though you opening the opportunity to own shares also to the general public say of 20 percent, government can own 29 percent and the credit unions then a combined ownership of 51 percent between them.

    In other words you looking at a local bank owned by a mixture of credit unions, general public and government. A wholly owned bajan bank where both small and big have a stake.

    They are many ways to achieve a goal you just got to think outside the box sometimes.

  43. William Skinner Avatar
    William Skinner

    @ John A
    This kind of thinking will not impress those who cannot see pass their own noses. Imagine we have meeting turns running for twenty years but we could not properly manage a national bank. It shows how limited we are. The credit unions should have been given government backing years ago to offer complete banking services. The current economic quagmire could make efforts a bit more difficult.
    We educate people to hold managerial keys for foreigners not to build lasting financial empires for themselves. The entire facade is disintegrating because the Duopoly opted to borrow and spend foolishly. This is our third trip to the international loan sharks.Imagine we could not even replace leaking water mains after a half century of independence. Our priorities were wrong. All of this pretty talk means nothing to the poor who are barely surviving. We talk about growth plans but the poor daily have to be planning creatively in order to eat.
    Perhaps, like WARU and Piece suggest a new national bank
    may become the bank of choice for the corrupt. Once bitten twice shy.

    The Duopoly Rules

  44. David Avatar
    David

    @John A

    The last time this blogmaster looked at the balance sheet of the two largest credit unions there was no evidence they are sitting on billions. They have member shares and deposits which are heavily lent to members.

  45. David Avatar
    David

    You must be aware John A that the offer to buy would have to be in US dollars not Mickey Mouse dollars?

  46. David Avatar
    David

    @Sargeant

    This IMF article should help with your question.

    https://www.imf.org/~/media/Files/Publications/WP/2017/wp17209.ashx

  47. John A Avatar
    John A

    @ David.

    Where there is a will there is a way.

    We can either sit here and throw our hands in the air and say better can’t be done because we always did it this way, or we can aggressively seek change. Choice is ours.

    One thing is for sure the system we have now has proven to be both ineffective and not one that favours growth of our economy.

    As for the members having their money invested would they prefer to invest in their own entity, or in entities owned by foreigners?

  48. David Avatar
    David

    @John A

    In is the pragmatic approach to business. However you play it a consortium of credit unions which translates to, BPW and COB,must find significant foreign dollars. COB is noted in the news of not wanting to be part of a credit union bank.

  49. Vincent Codrington Avatar
    Vincent Codrington

    @ William Skinner at 8:35 PM

    BNB was properly run. It was profitable, That is why it was readily acquired by RPBL.It also met all its regulatory requirements. Moreover it won international banking awards twice. And its management was 100% Bajan. It probably had the largest amount of local depositors.

    I am sure the reasons it was sold was published.

  50. Baje Avatar
    Baje

    @ William Skinner

    @ John A
    This kind of thinking will not impress those who cannot see pass their own noses. Imagine we have meeting turns running for twenty years but we could not properly manage a national bank. It shows how limited we are.
    Xxxxxxxxxxxxxxx

    You sure what you are saying is correct.

    I recently read of a local woman highlighted by Barbados Today operating a Ponzi scheme aka meeting term for about 20 years now ducking and hiding owing in excess of $500,000 and can’t pay up to those due their turn.

The blogmaster invites you to join the discussion.

Trending

Discover more from Barbados Underground

Subscribe now to keep reading and get access to the full archive.

Continue reading