by Carmel Haynes

CONSUMERS CAN TURN to the rest of the region for more competitive rates on deposits and loans from year-end as Government liberalises exchange controls.

However, financing entities want Prime Minister Owen Arthur to spell out the extent of the planned liberalisation signalled in his recent "budget" presentation in order to determine what impact overseas competition will have on their businesses.

Oliver Jordan, managing director and country head of FirstCaribbean International Bank in Barbados, said while it was still early stages yet, the banking industry was keeping a close eye on the situation as it developed.

Jordan said FirstCaribbean monitored developments in overseas markets as a matter of course, but he was waiting to see the scope of the liberalisation before he could say what responses the bank would have to make in terms of market competitiveness.

Anthony Shaw, chief executive officer of Signia Financial, also adopted a wait-and-see stance, but added he did not anticipate a significant impact in the short-term on Signia's personal and corporate lending or deposit business.

John-Paul Stuart, general manager of the Barbados Workers Union Co-operative Credit Union Ltd, agreed that limits on the liberalisation needed to be defined, but said he did not see it having a negative impact on the credit union movement.

Stuart said their traditional business customers were small businesses who would want easy access to capital, which was not guaranteed overseas where more stringent proof of creditworthiness might be needed.

While individuals might find higher interest rates for their deposits overseas, he added, they would not benefit from the greater tax exemption announced in the recent budget.