IN LIGHT OF scathing criticism, a leading banker is defending low interest rates on savings accounts.
Ian De Souza, managing director and chief executive officer of Republic Bank (Barbados) Ltd, said the economy was too unstable at this time to allow for a high interest rate environment.
“There is some weakness in the economy which in turn relates to the borrowing capacity. Banks here have to be careful now as the economy is under stress, as when the business sector is not entirely sure of the circumstances they will be operating in, they hold back on their projects.
“There is a tremendous amount of uncertainty in the market right now and that is affecting investment-based financing. If we are unable to convert our surplus liquidity, that will affect profitability,” he said. (CA)
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