De-risking is affecting the majority of banks in A & B

0
1485
- Advertisement -

The Economic Commission for Latin America and the Caribbean (ECLAC) says 67 per cent of the banks in Antigua and Barbuda have been adversely affected by de-risking.
But at the same time, ECLAC says the twin island appears to be ahead of most other countries in the region with respect to banks which have been taking the necessary steps to upgrade their systems and appoint compliance officers.
This is the outcome of a regional study that is looking at the economic impact of de-risking on the economies of the Caribbean.
The study, conducted by ECLAC, an agency of the United Nations, said that on the other hand, in the non-banking sector, the figure has been considerably lower, standing at 35 per cent.
According to Belizian economist Dr Ydahlia Metzgen, who is leading the study, they just completed a visit to St John’s where they conducted a series of interactions with representatives from local, off-shore banks and foreign-owned banks, credit unions, money transfer operations, financial regulators, and private sector non-governmental organisations (NGOs) among others.
Belize and St Kitts Nevis are also being used as part of the case study for the project.
Metzgen said a study of the banking sector and the non-banking financial services sector in all three territories revealed that many have been adversely affected by de-risking.
“The survey results based on these entities which responded by completing the questionnaire, showed that 64 per cent of the banking sector had been adversely affected while the figure for the non-banking sector stood at 51 per cent,” she revealed.
The economist said the Caribbean needs to have a healthy banking sector in order for it to achieve its wider goals of providing a higher standard of living for its people.
(More in today’s Daily Observer.)

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here