One senior banker is warning Barbadians that they will receive little to no interest on their savings for the foreseeable future, given the continued high levels of liquidity in the banking system.
Following the removal of the minimum interest rate of 2.5 per cent by the Central Bank of Barbados back in April 2015, commercial banks have slashed interest rates to between 0.05 and 0.15 per cent, while complaining that the financial system was awash with cash.
However, two years on commercial banks, despite reporting continued appetite among residents for personal and commercial loans, have maintained the virtually zero interest rates on deposits.
Recently appointed Managing Director of Scotiabank (Caribbean East) David Parks maintained that the financial system remained extremely liquid, suggesting that this and other factors were contributing to the extremely low interest rates on deposits at the moment.
“There is a lot of liquidity and I think there are some other things to work through before we would expect to see much of an increase again, with the liquidity that we have in our environment right now,” Parks said.
However, the Scotiabank official said Barbadians were still borrowing, with the interest rates on loans having also fallen to an all-time low.
Branch Manager for Scotiabank’s Warrens Sterl Lyons said customers continued to query interest rates because they were eager to see their financial circumstances “go into another direction”.
“Sometimes it is just a conversation on what types of investments are available in this economy. It might not be a savings per se but it might be an investment in real estate or an investment in other instruments that are going to grow them from where we are today. So we are spending time having those conversations with them and showing them the alternatives,” he stressed.
The Scotiabank officials were speaking with members of the media following a tour of the bank’s Warrens headquarters last week.
They explained that the financial institution was placing a heavy focus on digital expansion, pointing out that this move was customer driven and designed to make banking more convenient and comfortable for clients.
“We continue to work very closely with helping our customers achieve their financial goals and achieve their personal goals,” Parks said.
In light of the current economic difficulties confronting Barbados, Parks said Scotiabank remained confident and would continue its innovation and upgrades.
He also said the bank had ramped up its financial advisory services in an effort to better assist residents find financial solutions amid the current economic challenges.
“It won’t be easy, and I think again when economies are buoyant it is much easier for any business to have success, but when economies are difficult focus on certain fundamentals [is necessary] and those are the things I am really talking about, each customer one at a time understanding them and servicing them effectively . . . . My goal is to ensure that we deliver consistently day in, day out with every customer,” Parks said.
So what financial advice will you give to your clients to make their money work for them?
stop voting back in idiots to run the country, that’s pretty much the only advice left to give
So what financial advice will you give to your clients to make their money work for them?
stop voting back in idiots to run the country, that’s pretty much the only advice left to give
I might as well come in and take mine off and store it in a safe at home.
There is a limit to amount of money you can legally keep in your house.
Perhaps it would be better to take it all off ,in cash, and place it in a deposit box in the same bank.
I might as well come in and take mine off and store it in a safe at home.
There is a limit to amount of money you can legally keep in your house.
Perhaps it would be better to take it all off ,in cash, and place it in a deposit box in the same bank.
All Barbadians by now should have had all of their savings in local credit unions or the only locally owned bank if they prefer a bank. These foreign banks that import all of the high end Labour and only lower end given to locals should be forced out of Barbados. Their only concern is to make millions and pay those imports millions in bonuses every 3 months for making the profits on the back of bajans. Then they export the foreign exchange and further kill our economy. There is no way no white man nor black for that matter should be coming bout here and deciding how much interest we ears on hard earned money whilst they draw millions. We are beginning to look like a real third world country again.
Bajans have been fleeced so many times, ala BCCI, Trade Confirmers, CLICO and pretty soon NIS and Government Bonds, that they have decided to take the same path as the fellow who was trusted with one talent in the well-known parable.
And all the King’s men and all the King’s horses, with their doctorates, degrees and brand name schools are unable to put this broken Humpty dumpty island together again.
All Barbadians by now should have had all of their savings in local credit unions or the only locally owned bank if they prefer a bank. These foreign banks that import all of the high end Labour and only lower end given to locals should be forced out of Barbados. Their only concern is to make millions and pay those imports millions in bonuses every 3 months for making the profits on the back of bajans. Then they export the foreign exchange and further kill our economy. There is no way no white man nor black for that matter should be coming bout here and deciding how much interest we ears on hard earned money whilst they draw millions. We are beginning to look like a real third world country again.
Bajans have been fleeced so many times, ala BCCI, Trade Confirmers, CLICO and pretty soon NIS and Government Bonds, that they have decided to take the same path as the fellow who was trusted with one talent in the well-known parable.
And all the King’s men and all the King’s horses, with their doctorates, degrees and brand name schools are unable to put this broken Humpty dumpty island together again.
What about the exorbitant fees bankers charging their customers to access their own money! How do you all come up with these fees and sleep at night!
What about the exorbitant fees bankers charging their customers to access their own money! How do you all come up with these fees and sleep at night!
My question always be this. Why gave people your money to charge you for keeping it and charge you for taking it back off. Does it make scene.
My question always be this. Why gave people your money to charge you for keeping it and charge you for taking it back off. Does it make scene.
Time to pull your money out.
Time to pull your money out.
Banks have been using our money for hundreds of years to gain huge profits to fatten the wallets of these people. Now they only want to give less than one percent interest. Smh. Its time that all of we take our money out of the banks and invest it in other places and ventures to gain us more than one percent.
But majority won’t do it!
that’s true Ras the majority of bajans just complain but still go along with the status quo. We are a nation of complainers. We are no longer movers and shakers or situation changers Smh.
Banks have been using our money for hundreds of years to gain huge profits to fatten the wallets of these people. Now they only want to give less than one percent interest. Smh. Its time that all of we take our money out of the banks and invest it in other places and ventures to gain us more than one percent.
But majority won’t do it!
that’s true Ras the majority of bajans just complain but still go along with the status quo. We are a nation of complainers. We are no longer movers and shakers or situation changers Smh.
We need your staff to answer the phone and for those in management positions to return calls. I am still awaiting calls from your staff 3 weeks now.
We need your staff to answer the phone and for those in management positions to return calls. I am still awaiting calls from your staff 3 weeks now.
And that’s why bajans have closed their accounts and moved their money to the credit unions. @ nearly 4%
credit unions same thing or there about
And that’s why bajans have closed their accounts and moved their money to the credit unions. @ nearly 4%
credit unions same thing or there about
The economy would benefit if we found alternative places to invest our savings OTHER THAN IN IMPORTED NON-YIELDING LUXURIES, TRAVEL AND COMMODITIES . Zero interest rates push up consumer price inflation because saving becomes pointless and people tend to be extravagant without a savings incentive. The Central Bank of Barbados has recently announced an issue of debentures yielding six and threequarter percent annually. Place your bets on Barbados’ recovery rather than on imports !!! Why does this continue to be the best kept financial management secret ?
The economy would benefit if we found alternative places to invest our savings OTHER THAN IN IMPORTED NON-YIELDING LUXURIES, TRAVEL AND COMMODITIES . Zero interest rates push up consumer price inflation because saving becomes pointless and people tend to be extravagant without a savings incentive. The Central Bank of Barbados has recently announced an issue of debentures yielding six and threequarter percent annually. Place your bets on Barbados’ recovery rather than on imports !!! Why does this continue to be the best kept financial management secret ?
Banks do wunna ting, all de mASSES gine do is complain fah 9 days – 9 wks but still keep de money in dey wid wunna.
You sooo right … check royal bank can’t save a cent every month them take 5$ them call brass tacks yet leave money at bank….
Not a cent of mine… all going credit union until them play ass
Banks do wunna ting, all de mASSES gine do is complain fah 9 days – 9 wks but still keep de money in dey wid wunna.
You sooo right … check royal bank can’t save a cent every month them take 5$ them call brass tacks yet leave money at bank….
Not a cent of mine… all going credit union until them play ass
Commercial banks do next to nothing.
They are the biggest FOREX movers in the world.
#bitcoininyahass
They contribute so little to the economy or its people besides jobs, of which they are closing branches and firing staff.
Commercial banks do next to nothing.
They are the biggest FOREX movers in the world.
#bitcoininyahass
They contribute so little to the economy or its people besides jobs, of which they are closing branches and firing staff.
Now you see this nonsense. Whether or not there have high liquidity the banking system is rigged to take and not give unless they lending you at high interest rates and charging fee for every single banking transaction. This is highway robbery. Credit Union for me please.
Now you see this nonsense. Whether or not there have high liquidity the banking system is rigged to take and not give unless they lending you at high interest rates and charging fee for every single banking transaction. This is highway robbery. Credit Union for me please.