Like almost every other Barbadian, I used to be unquestioningly confident about our banking system. But in 2018, Barbados banks voted against depositors’ interests. My bank voted for the Government to confiscate some of my retirement savings, and hold the remainder hostage – not allowing me to access all of it until the year 2033. Therefore, they gave me every reason to distrust them.
This year, Credit Suisse, the Swiss bank that lent us money with unfavourable terms, was failing. Fortunately, their depositors were insured to 100,000 Swiss Francs (BD$225,000). In the UK, the insured amount is 85,000 British pounds (BD$215,000). In Canada, it is CAD$100,000 (BD$150,000). In Europe, it is $100,000 Euros (BD$220,000). In the US, it is US$250,000 (BD$500,000).
Despite my distrust of Barbados’ banks – which they have entirely earned, I asked them if my deposits were insured. They proudly said they were – and showed me a certificate from the Barbados Deposit Insurance Corporation (BDIC), that stated that deposits are insured to the maximum amount by law.
If you have never been tricked by banks before, then that response would likely satisfy you. But haven been bitten, I asked how much of my deposits were insured. Their answer was BD$25,000. No, I did not leave out a zero. It is $25,000 per individual depositor per institution.
What that means is that if you received $200,000 for selling your house, and the bank failed before you could use that amount to build or purchase a new one, you may only get back $25,000.
You may try spreading your risk by opening accounts in several financial institutions. But you may get tricked again since some financial institutions are allowed to receive deposits without having any part of it insured with BDIC – like all credit unions, and business accounts (including Church accounts) at banks.
What that means is that if you put that $200,000 in a credit union or in a business account in a bank, and the credit union or bank failed, you may get back nothing since none of your deposits are insured.
To reduce your risks, our options seem to be: (i) deposit your funds in a bank outside of Barbados that provides better insurance, or (ii) deposit a maximum of $25,000 in several Barbados financial institutions with deposit insurance.
The BDIC provides the following list of insured financial institutions that operate in Barbados: Republic Bank, Scotiabank, First Citizens Bank, CIBC FirstCaribbean International Bank, RBC Royal Bank, Sagicor Bank, ANSA Merchant Bank, SigniaGlobe Financial Group, Capita Financial Services, and RF Merchant Bank & Trust.
We are promoting ourselves as a well-regulated financial services jurisdiction, and are encouraging visitors to reside and work in Barbados as part of the Welcome Stamp program. Why would we not first increase the amount of deposit insurance, and expand it to include business accounts to protect the visitors’ money? Why would we not ensure that financial institutions that may take visitors’ deposits be required to insure those deposits?
I suggest that the deposit insurance be increased to at least $100,000 for all depositors – including individuals, businesses and churches. If the banks threaten to increase fees to maintain their profits, then depositors should be offered two levels of deposit insurance, $25,000 and $100,000, and be informed of the fees of both – to allow them to decide whether they want to pay the increased fees.
In the US, deposits are insured with the Federal Deposit Insurance Corporation (FDIC). Between 2008 and 2013, there were 489 US bank failures with US$501 billion in deposits. In 2021 and 2022, there were no US bank failures. So far in 2023, three US banks have failed with US$368 billion in deposits (Source: FDIC). We do not know if the contagion will spread to Barbados banks.
Two things appear certain. One is that no bank or bank regulator will tell the public if the bank is going to fail. The other is that questions about Credit Unions’ deposits being uninsured, and the relatively low deposit insurance amount in banks, will likely be met with excuses and intentions to eventually do something – sometime over the rainbow.
Grenville Phillips II is a Doctor of Engineering and a Charteredy Structural Engineer. He can be reached at NextParty246@gmail.com
How come none of these brilliant minds, developed and trained at the UWI, has never thought it necessary to bring this to the attention of the public? And yet, almost every day someone is screaming at us to insure a chattel house as protection of your investment. Day by day, what was once an honorable profession (Banking. Was it ever?), is being exposed as merely criminals in suits. Same for Wall Street.
Deposit insurance has been around for a long time. Nothing new here.
Banks provide Custody of your monies for safekeeping.
As intermediaries Treasury make profit turnarounds with overnight deposits between settlements between counterparties.
They invest a multiple amount of Client money held in various financial instruments.
One solution is Banks are forced to keep each Clients money in separate safekeeping accounts and are not allowed to touch it.
Ever heard about Trade Confirners?
The failures of deposit taking institutions are nothing new in Barbados. Maybe CLICO?
The country, and the world, are facing much more weightier issues than insured limits on deposits within financial systems.
For even if the adequacy suggestions were accepted most depositers and banks, maybe whole countries too, would be wiped out by a wide range of exgenous circumstances.
These may include, but not limited to, a world war scenario, conflict in the Taiwan Straits, the default within the US like in 1932 and 1971, the dethorning of the greenback, a massive and coordinated selling off of treaauries by Saudi Arabia and China, political uncertainty within a few of the G7 members, a run on leading global banks, the tipping point beingvreached by leading global banks in rationship to the mismatch between actual deposits or assets and bank money creation or derivative operations, and on and on.
Should any single or combination of these occur they’ll be bigger problems than Trade Confirmers.
“Ever heard about Trade Confirners?”.
That one was ugly indeed, destroyed many lives, percursor to CLICO, practice run???, destroyed even more lives.
But…these are different times and much more to lose in every area…people realize they have to stay far, far away from the lying dangerous politicians and their associates nd agents….believe nothing they say.
Pacha..eyes are opening real, real, fast and wider even quicker..things have gotten TOO real..
On the world front…saw a breaking news clip, just a glance about impeachment in the air…confusion everywhere.
Yes, yes, yes.
The orders of magnitude are larger than ever.
Money in banks have always been.risky.
What alternatives do we have.?
There is risk associated with depositing money in any financial institution or making an investment. The issue here is how can risk be mitigated. The practice as in the USA and elsewhere there is an insurance cover if you save in a bank upto 25 thousand in Barbados. Credit Unions do not extend a similar policy to members, it has been stalled at the ministry of finance for many years. There is a relevant policy framework necessary AND importantly there is an expensive cost to underwrite the business given scale in Barbados. This is the feedback the Blogmaster has received.
@David, your succinct style is often quite ‘interesting’ – is the best way I can say it.😎
Brother, I would strongly advise that 90% of our parents and grandparents did NOT look at their bank deposits as a RISK!
Thus, when you so glibly assert that a deposit and an investment in say a specific CD or annuity or mortgage product or some other bank offer have the same risk I am quite ‘bemused’.
Maybe you are right to say that we should all NOW be savvy enough on bank deposit risk but to suggest that it was always so is a stretch IMHO!
Let’s call this game for what it is: Financial Jeopardy … with consumers being the dumb players who know neither the question nor the answer and what we think are the freaking rules get changed on us almost whimsically.
What the blogmaster posted is fact. Because older people didn’t perceive it as a risk does not mean it was not so. Further, even gilt edge carry risk.
Unlike what was said earlier, the total deposits in US banks is about 17 trillion dollars.
However, derivatives issued by the top banks, largely, is over 640 trillion, notionally.
These two numbers remain pregnant with meanings.
“However, derivatives issued by the top banks, largely, is over 640 trillion, notionally.”
derivatives are various long and short positions to cover fluctuations in future markets
in theory they net out against each other
There is a large difference in the notional value and actual netted value of derivatives—$600 trillion versus $12.4 trillion—as of 2021.
Yes, of course. There are bets that assets prices will go up, on the one side.
And that prices will go down, on the other.
Most times the owners of calls and puts are the same people. Hedging!
But the size of the market in financial speculation was the point. A point not dissimilar to the cause of the 2008 meltdown.
TSMC, on the Taiwanese Chinese province presents a rainbow for the war machine.
As America is threatening to blow it up to avoid the Beijing government of the PRC from getting their hands on cutting edge chip tech, in the event that China invades itself.
This is where the One China policy is. This is the rainbow!
“But the size of the market in financial speculation was the point.
the total deposits in US banks is about 17 trillion dollars.
However, derivatives issued by the top banks, largely, is over 640 trillion, notionally.
(netted value of derivatives—$600 trillion versus $12.4 trillion)”
This is proof that it is all the same money going round and round
I have one comment on Grenville’s piece.
“We are promoting ourselves as a well-regulated financial services jurisdiction, and are encouraging visitors to reside and work in Barbados as part of the Welcome Stamp program. Why would we not first increase the amount of deposit insurance, and expand it to include business accounts to protect the visitors’ money? Why would we not ensure that financial institutions that may take visitors’ deposits be required to insure those deposits?”
I must admit that he catches and correct himself in a later paragraph but for a few moments he was caught up with Bajan foolishness which I will now seek to exploit.
Too often, we are more concerned about the best interests of our visitors than those of our citizens. Many of us are contented top be second class citizens in our own country.
We must abandon this discriminatory and piecemeal approach to right and benefits and treat everyone equally (a fact that Grenville happened to stumble on later) or treat our citizens more favorably than we treat Others, In addition, I suspect that welcome stampers have the bulk of their money parked outside of Barbados.
GPII managed to find his way back
“I suggest that the deposit insurance be increased to at least $100,000 for all depositors”
“Too often, we are more concerned about the best interests of our visitors than those of our citizens. Many of us are contented top be second class citizens in our own country.”
the slave mind in all its ugly glory…4th class citizen is just fine with them..
..same ones want to peep in the bedrooms of the local population to see what porn they are watching so he can dictate and give permission on which porn they should watch….the horror of slave societies and the bullies and wannabes lurking..
There is no rainbow for the West, only “clouds”. The most menacing!
On the day when Bukhmut falls, the Western puppet, Zelenski, continues his world tour.
As he leaves Ssudi Arabia headed to Japan for the meeting of the G7.
There is nothing great about them and seven was never their number.
Maybe 6, the number of the beast!
Irony we said.
Saudis Arabia a country just humiliated by the poor Yemenese. They having all of the overly expensive American weapons and after 7 years could not pervail.
The Arabs, after the massive defeat in Syria by the Resistence Forces have finally been brought to see wisdom.
Maybe Zelenski could have learnt a lesson about his reluctant curators in the West, anxious to to dump the conflict against Russia for one with their real percieved enemy China!
Can’t beat Afghanistan. Can’t beat Russia. Fail up and try China!
And a re-militarized, fascist, Japan forswearing it’s pacifist constitution at the dictates of empire. The empire which imposed such in the first place.
Not satisfied with being the guinea pigs at Hiroshima and Naghasaki with over 200, 000 dead last time, by the wicked hand of America, Japan has remained a country seeking more of the same. Let them have it more fully this time around.
Zelenski, the world traveler, for some reason does not want to stay at home and manage the war, the lost cause. As the dominoes start to tumble, for him it’s anywhere but home.
The Russians shall be going to the Polish border. They shall to annexing Odessa, expand north and West of the Dnipro River, making Ukraine a rump state.
What a rainbow indeed! A tattered rag of wokeists within the United States military industrial complex, imposing a foreign culture on that institution, and being neither fish nor fowl, not a war can be won.
When we see these little boys purporting to postulate on critical matters, the real story begs a question.
What sense does it make to engage in ideation about insured deposits when we have vastly greater problems requiring the fittest brain muscles.
What is wrong with the Bajan mind which makes it to avoid the existential while constantly gravitating towards the mundane, the irrelevant.
As sumarised in a compound question.
What sense does it make to think about the insurance on deposits, when the payer of last resort, the government of Barbados, is currently broke, even before the shiiiite hits the fan?
What difference would the insured deposit level make if one has to carry a truck full of hundred dollar bills to buy a loaf of bread?
Listen to Douglas MacGregor for a wholistic disposition. He’s a White man, so maybe the mindless, headless, here will see him as the saviour.
“What is wrong with the Bajan mind which makes it to avoid the existential while constantly gravitating towards the mundane, the irrelevant.”
A question on many lips…
Cant focus on reality more comfortable in some sleazy politician ‘s fake world of fantasy…
.can’t focus on rolling back the mistreatment of local melanated people, can only focus on others who are treated better and that makes them happy. .
I pontificated about the G7 in Hiroshima (but geezer struck it out).
Their petticoat is showing as the so called “business community” is
they have to fall down
Jah people the a loving tribe
Jah people them no warmonger
Pacha..saw where the Bahkmut area is under victors…would much prefer the whole thing ends….but looks like there is stll a way to go.
The press chat held recently by Powell appears to be signaling to the market that the Fed is having a challenge controlling inflation despite all the rate hikes and other policy interventions. It is probable there maybe another hike coming. The continuing increase in interest rate trend in the US does bode well for Barbados given foreign debt payments obligations.
What cannot be refuted is that local banks will continue to make money given the favourable interest rate environment.
Well, this is the nature of militarism, unfortunately.
We’ve had a 500 years war on Afrika which continues at pace.
While the mind guards here will have us focused perpetually on a narrow false economy as acceptable discourse, that disposition misses synthesis, the connection of everything.
The IMF, for instance, just gave Ukraine 15 billion dollars, as a loan, when its chárter specifically prohibits lending to a country at war.
Now how could economy be properly understood in the absence of an understanding of military science?
We fail to see how interest rate increases bode well for Barbados or anywhere else, given the realities that demand pushed inflation is minor and that none of the Powell’s measures address the supply side. Meaning, the profiteering of corporations which is 75 percent causal. Or the irrational impoverishment of populations to achieve inflation reduction targets.
When banks are failing, given the lag between low rates and higher rates, the inability of borrowers to pay present loans farless take on more debt, represent a logic which flies into the face of even neoliberalism itself.
It’s all war! Whether Powell or anybody else, it’s only war. Hybrid warfare is best expressed by the Western corporations which were lining up to suck the blood of Ukraine even before 2014.
Economy cannot be understood in the absence of everything else as the local 11 plus boys and girls, including Mia Mottley, insist on spoon-feeling us. You cannot truly understand anything in the absence of everything else. But this is the decades old preoccupation. It shall be soon brought to naught.
Before the thought commissioner brings us back to the trite Ben Norton has just located economy within the wider region where imperialism as hybrid warfare and lawfare dominates.
“While the mind guards here will have us focused perpetually on a narrow false economy as acceptable discourse, that disposition misses synthesis, the connection of everything.”
At the very back, far behind everyone else as usual, waiting for copiers and skunks to mislead them..their fate in life, the only one they have…
“Economy cannot be understood in the absence of everything else as the local 11 plus boys and girls, including ”
Dumb asses extraordiaire..ya would think after decades in such environs they would understand better how certain things work, but liars, thieves and deceivers are only interested in the money flowing in their direction to keep corruption alive and well, their only mission in life….it warmed my heart to see higher interest rates just catspraddled their decades old billion dollar skimming and had them spitting FIRE at Empire..
OSA was arguably the best practical economist the country has had.
But yet, even he could do no more than sellout the country to pay bills, his own words.
Since he left things have been steadily going downhill because of his religeous obeisance to Western economic orthordoxy.
Not only locally.
And still, the chief conservator here will have us be limited to talking shiiite about a long dead system.
Anybody seeming to veer off course, the sheep dog dutifully brings out a mind-bending stick of ignorance, in futile attemps to redirect.
Even as no amount of that shiiite could impact the waves of hurricanes descending.
That’s their role…deflect and distract.
The beasts’ back is against the wall…
My book Collapse threw them into a tailspin from which they are yet to recover since the COLLAPSE came down on all of them….they are catspraddled..
..weee found their Slave Empire, their nest, and they KNOW what’s coming next…weee will DESTROY IT and THEM..
“But yet, even he could do no more than sellout the country to pay bills, his own words.”
That’s the fate of placeholders, all did, all have to, no matter how they pretend, they will NEVER have full control of the island.
..hence the criminal trick of TIEFING BILLIONS to fund their own Empire., since that is all they want to know..
….and that is what Owen should have told us, prepared us, but didn’t …i suppose he was concerned about the safety of his family given their track records of murder, can’t fault that. Weeee are now left to TAKE THEM DOWN…and CLEAN UP..
one thing’s for sure..they will not get away….not under my watch unless they are eager to unleash the beast in me…then they are welcome to give it a try..
Three posts from that IDIOT with irrelevant rambling shyte about herself that ain’t nothing at all to do with the topic.
Pacha…their death knell is in the air….weeee can smell their STENCH.
Stink niga…yall tiefing criminal days ARE NUMBERED….start counting….and guess WHO got the upperhand…
up until to recently yall vile demons could not get enuff of my personal business, FOR YEARS could not stay out of it as ENABLED although WARNED REPEATEDLY…
….because you and ya trash leadership knew what you shouln’t and i didnt….tiefing information to SELL IT is what they did, up in Empire scrounging for information to misuse and abuse…..now ya want nothing to do with it, even though one or two of you nobodies probably went to ya graves with it on ya FOWL MINDS…deal with it…who is the igrunt bitch now….scum… evating FAILED including the REPARATIONS SCAM..you will get NOTHING but prison time and or death, it’s written in the stars…but yall bottomfeeders and THIEVES wont know a thing about that…
..i spread ya evil crimes all across the Americas, Europe and the Afrikan continent ….crawl back in ya filthy holes…no one except the Slaves and Pimps want you..EVERYONE has been warned about you, no one will EVER TRUST you……you are DONE..
Ya can run DUMMY but ya cant escape, never start something ya cant finish and have to run from…
….tiefing private, confidential information and money from Empire is not exactly the brightest career move….yall should take a worldstage bow for pulling that off..
Been telling yall for YEARS…that ya are as DUMB AS ROCKS…yall just had to go and PROVE ME RIGHT…for the WORLD to hear about it..
Dr. Grenville, you think you have problems with money and financial insurance now? Say hello to CBDCs where, once you’ve given up total control to an invisible, untouchable ‘thing’ you’ve totally given up your FREEDOM. A ‘thing’ you don’t own. Is not allowed to touch. Just #s on a screen, distributed in accordance with your compliant behaviour. You will be surrendering your FREEDOM, your MORTALITY, your ability to think UNHERDLY to an algorithmic beast. Bitcoin was an intro to this system. The catch to bitcoin was to make quite a few people rich, and rich indeed some became. Since then many have been singing the praises of digital currency…exact intended results of the ‘CONTROLLERS.’
Do you really believe that you’ll have money come 2033? Aren’t you aware that the beast is persecuting Christians as well?
Is our highly impressive Orator a WEF child? Will she insulate the island from this AI terror or is the well educated island equipped to ride the waves of deception of an illusionary algorythm to enslavement in perpetuity? Forget about ‘Over the Rainbow.’
You are alive?
How do you define freedom? When you walk around with a mobile phone that has cellular functional, are you giving up your freedom? What about using your bank card to make purchases? Several examples one can use to question if Big Brother is monitoring. In the case of CBDCs, are we there yet?
@David…..If we the people don’t push back and refuse this folly, we will looonnng for the days when we could walk around with a cell phone. With Cell phones and bank cards we were goose stepping into this satanic utopia, yet we had options. CBDCs run on AI = hell on earth.
The majority aka the masses could care less.
The controllers are well aware of the pliable mindset of the masses, hence it is quite easy to enslave many and kill many off while lying to them.
This has been the modus operandi of Homo sapiens from start times and so shall it be in the end times. The objective is for all the actors to play their part to ensure there is equality and equity as circumstances dictate.
Oh David! No David! This has not always been the MO. Seems like you’ve already hung out your white flag.
On page four (4) of the Monday, May 22, 2023 edition of the Daily Nation, Sandy Lane has two (2) ‘Application for Work Permit’ notices that, having not received any suitable applications for the positions of (a) Assistant Director of Food & Beverage and (b) Chef de Cuisine, they intend to submit an application for work permits for non-nationals to fill those positions.
Doesn’t this CLEARLY INDICATES the hotel had already IDENTIFIED non-nationals for those jobs, perhaps even BEFORE the vacancy advertisements were published?
Are we to believe that:
(1). there aren’t any Barbadians who are qualified for any position at Sandy Lane, other than bellman, security, pool & beach maintenance, housekeeping, laundry room attendents, kitchen stewards or gardeners etc?
(2). persons never, ever send any written correspondence to the Chief Immigration Officer, objecting to the granting of work permits to Sandy Lane?
(3). or have objections been purposely and continually ignored by the CIO and successive BLP and DLP administrations?
The situation has been allowed to continue ‘far too long.’
One can reasonably assume no objections were submitted to government.
Usually there is an expat earmarked for the job or on the ground shadowing the job with a holiday visa.
Perhaps what we have is similar to a self- fulfilling prophecy.
Folks reason that no-one will listen to them if they object and as a result so few persons (if any ) object that we cannot move the needle in the right direction.
Your responses have become SO indicative of the reality of Bajan hopelessness.
“What can we do…?
No one objected…!
This has always been so
Are we there yet?”
You are sounding like stinking Bushie…
Are you not supposed to be the ultimate optimist ?
You SHOULD be pushing solutions! critical assessment and viable options..
Next we will hear you suggesting that Jesus and his gospel represents our ONLY serious hope of avoiding permanent (eternal?) damnation…
ha ha ha
Context good man.
There are still good things in the world to enjoy and savour. Barbados is of this world.
Have you been able to successfully raise a family?
Attained ‘some’ level of academic success?
Have you been able to achieve actualization from helping others?
To list your many achievements Bushie in a more substantive way wouldn’t be advisable. The point is dear Bushie, the road is long and oftentimes arduous but along the way …
Florida school bans Biden inauguration poem
The Miami Herald, which was first to report the removal of Gorman’s poem, named the parent who had brought the complaint as Daily Salinas, who has two students at Bob Graham education center in Miami Lakes.
She told the paper she was “not for eliminating or censoring any books” but wanted school materials to be appropriate for children.
To support her complaint of indirect “hate messages” supposedly contained in The Hill We Climb, Salinas specifically referred to two pages of the published version of the poem. They read:
“We’ve braved the belly of the beast.
We’ve learned that quiet isn’t always peace,
And the norms and notions of what ‘just is’
Isn’t always justice.”
“And yet the dawn is ours before we knew it.
Somehow, we do it.
Somehow, we’ve weathered and witnessed
A nation that isn’t broken, but simply unfinished.”