Some senior management positions at the Central Bank of Barbados could be on the chopping block.
In a message circulated to all staff yesterday, Governor Dr DeLisle Worrell formally indicated that the bank was about to proceed with planned restructuring, which would result in a smaller team.
Worrell also indicated that the proposals, which are due to go before the board later this month, would likely take effect by the middle of the year, resulting in a new management structure.
The announcement has reportedly triggered “an anxious” response among some members of staff, including senior managers of the bank which is said to be top heavy.
“Clearly expenditure has to be cut,” said one high-level source, who added that the restructuring had become necessary in light of the bank’s lacklustre performance over the past five years.
The source pointed out that since 2009 the financial institution has been facing declining earnings on its foreign reserves as a result of low interest rates on securities held in the United States.
Another source emphasized that changes were needed, particularly at the management level, explaining that there were several senior posts that needed to be consolidated.
“They have to practice what they preach and lead by example,” the source said, stating that in addition to the proposed restructuring, there was need for recapitalization of the Central Bank which, by law, was not allowed to retain its earnings.