Mottley’s Message to Banking Sector:  Be a Bank, not a Security Guard

#Barbados, November 3, 2021 – Prime Minister of Barbados, Mia Mottley is preparing to legislate the operation of banks, to ensure that money works for people and development, and to streamline the vex issue of fees charged at the institutions.

The Prime Minister told a recent business forum, organised by the Barbados Chamber of Commerce and Industry (BCCI), that it “ cannot continue” where deposit loans are at ratio of 55 per cent, when the developed world has ratios of 80 per cent.

“We have people who are watching people’s money, rather than working people’s money,” she said, adding that the issue of fees being paid on minimum deposit, affects small depositors, the credit union movement, and large depositors.

“I have advised the Governor of the Central Bank, that if we won’t get it right, the Government will legislate, because it is not fair to the people in this nation,” Miss Mottley said.

She pointed out that she was not trying to be “invidious or offensive,” but noted that it was talking straight, because banks are intended to be in the business of financial intermediation “not security, and if I wanted a watchman, I would go and hire a security guard.”

“At the very time we are asking you as a private sector and we are asking Barbadians as individuals to think outside of the box, it cannot be that we are going to sit idly by and allow persons to abandon their purpose of financial intermediation and to go into the business of security,” the PM said.