Banks’ cry

BNB's managing director Derwin Howell.

By Geralyn Edward, Business Editor | Mon, June 11, 2012 - 12:06 AM

Commercial banks in Barbados are pleading for an ease on the interest they are forced to pay customers, who have now accumulated more than $4 billion in savings.

The minimum deposit rate is the last remaining rate the Central Bank of Barbados insists commercial banks must pay their customers, but bankers want the regulation removed or adjusted.

The Central Bank has set the minimum interest on savings at 2.5 per cent. The other interest rate controlled is that at which commercial banks borrow from the regulating institution.

The bankers have been calling for a change for almost ten years now, and as recently as June 1, the bosses of the island’s five commercial banks appealed to Minister of Finance Chris Sinckler to do something about the minimum deposit rate because it was reducing their revenue margins in an already flat market for loans.

Barbados National Bank (BNB) managing director Derwin Howell told the DAILY NATION that fixing of this rate by the Central Bank was an unnecessary imposition.

Read the full story in today's DAILY NATION.

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Posted by Clarke Beattie 11 months, 2 weeks ago: Poor bankers with their executive salaries and perks, nice houses & cars. They have your FOUR BILLION to play with, maybe they're not doing a very good job? They want to pay you less than the lousy 2.5% you receive!

Just maybe they should be paid on their performance? Tell me what YOU think.

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Posted by John Da Silva 11 months, 2 weeks ago: How about Banks be more willing to lend? Banks have become so risk averse that you basically have to have the money in the bank as collateral before they will lend to you. It is amazing with all the fees banks now charge, that they should be crying poor. Looking at the financial statements of all the major banks, all of them seem to be very healthy.

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Posted by Belle Brewster 11 months, 2 weeks ago: They have got to be kidding!

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Posted by Bim Bum 11 months, 2 weeks ago: Don't you worry...
Royal Bank just initiated a per-sale charge of 50 cents per card swipe transaction at all electronic merchants.
It started April 1. I noticed it when my statement came in.
Must rethink my priorities.
Mind you they did reduce ATM deposits from $1.00 to 75 cents.
Huge compensation! LOL

Mattress starting to look good?

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Posted by Bim Bum 11 months, 2 weeks ago: Look at that picture!!!
Doesn't that just say.. Fat Cat Banker, Doing Well?
Those boys don't 'suffer' too badly, do they!

Hey, Mr.Banker,
how's about a reduction in Your Humongous Salary, dude??
Wouldn't that help the Bank's bottom line?
Not to mention...Entertainment Allowance, Travel Allowance, Other Perks...

Awww...you guys have it so hard!! LOL!

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Posted by J. Payne 11 months, 2 weeks ago: People soon will have to scale-up the sue-sue (spelling?).

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Posted by Kenneth King 11 months, 2 weeks ago: Sometimes I wonder why these Banks keep insulting our intelligence, have they forgot how much charges they are putting on loans. Just like one contributor wrote, the mattress starting to look really good. If Barbadians start that trend again, I wonder what will happen....who will be begging who. Many house long ago were build with cash money by building step by step and just maybe we should go back to basic.