Prime Minister Mia Mottley of Barbados has issued a call for sweeping changes within the Caribbean banking sector, urging the introduction of greater diversity and competition.
Mottley highlighted the sector’s lack of dynamism and its repercussions on regional economic growth during the concluding day of the 31st Afreximbank Annual Meeting and the Third AfriCaribbean Trade and Investment Forum in the Bahamas.
The challenge of de-risking
Mottley pointed out the adverse effects of de-risking by banks, which she argued stifles the ease of banking in the Caribbean compared to places like Canada, where opening a bank account could take as little as 10 minutes.
She described the current scenario, where Caribbean residents face a two-to-three-month process to open a bank account, as unacceptable, stressing that the Caribbean people “cannot be financial lepers.”
Personal reflections and calls for better practices
Reflecting on her own experiences, Mottley shared how at the age of 16, she could easily open a bank account in the Royal Bank of Canada without the cumbersome requirements faced today.
She acknowledged the need for due diligence but insisted that competition could streamline these processes and improve service quality.
Strategic financial relationships and local investment
On the economic front, Mottley celebrated Afreximbank’s role as a vital link between Africa and the Caribbean, noting its positive impact since opening a regional office in Barbados.
She discussed the recent financial activities, including a substantial loan secured by Barbadian businessman Mark Maloney from Afreximbank, aimed at expanding local infrastructure and business.
Vision for regional empowerment
Mottley emphasized the potential within the Caribbean and Africa to harness local capital for regional development.
She advocated for understandable and accessible investment avenues that could empower local economies independently of external aid.
Additionally, she underscored the ongoing necessity for reform in the global financial architecture to better support regional growth and stability.
