Nation e-Edition

‘Don’t sell – take over bank’

‘Don’t sell – take over bank’ Dr Don Marshall (FP)

Thu, November 08, 2012 - 12:08 AM

A POLITICAL SCIENTIST says that instead of selling their shares in Republic Bank (Barbados) Limited, Government and the National Insurance Scheme (NIS) should try to take over the former state-owned entity.

Senior research fellow at the Cave Hill Campus of the University of the West Indies, Dr Don Marshall, told the DAILY NATION there was an important role for a national bank or a development bank.

“If we are talking about developmental  projects,” he said, “then you must know that since Barbados does not benefit from angel investors  – that we have closed the Barbados Development  Bank (BDB) years ago – then you have to maintain  an interest in a national bank, and I am saying  the a national bank is needed for the fledgling industries like the solar and alternative  energy sector to realize the real innovations  for which inventions will be the hallmark  of this enterprise.”

“The lie has gone out that the sale of the Barbados National Bank (BNB) was the best thing to happen. Now, we are bereft of any kind of venture capital agency or bank to which the state can incentivize  or direct to lend in a particular direction. We now  have to await Trinidadians to make that decision  in Port of Spain.” (GE)

Please read the full story in today’s DAILY NATION, or in the eNATION edition.

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Posted by Tony Webster 1 year, 11 months ago
The genie has already escaped from the bottle, Sir, and you cannot just tell him to go back in! Carrying this argument to its logical extension, should we also "take over" Barbados Light & Power, and hope (!) that we can "direct" the (new) management to deliver to us cheap energy thereafter? Whooooeeee! Animal Farm yet lives! Why am I reminded of the spectacular sucess story of the Barbados Marketing Corporation, in running supermarkets? It would make more sense to encourage and support our Credit Unions, to graduate into Commercial Banks, and to incentivise lendings generally to start-ups. Once we have a Minister "directing" anything to do with enterprise, we are on a slippery slope.

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Posted by Olutoye WALROND 1 year, 11 months ago
I can't make the connection between the government owning the bank and the funding of developmental projects. Is Mr. Marshall saying that if the government controlled the bank the latter would be mandated to engage in project financing even if they are risky? If so what happens to the profitability of the bank?

The truth is that the government has myriad ways of financing developmental projects without owning a bank. It can give tax rebates, exempt customs duties, guarantee loans, establish a fund through the Central Bank....

By the way, Mr. Marshall, a decision made in Port of Spain can be reach Barbados in less than 30 seconds these days.
They call it modern technology.

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Posted by Kenneth King 1 year, 11 months ago
I will not put one cent into this Bank unless it's fully into the hands of Barbadians again. I do not know why The Former Minister not held accountable for this mismanagement of our country's interest after selling our Pride.

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