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Feb 17, 2016

Unified Approach is Best Option to Tackle De-risking

Dean Barrow

The loss of correspondent banking relations has been called a potentially huge crisis for Belize, and it is already affecting to a major extent smaller countries in the region. Desperate times call for desperate measures, and one option put on the table at the session was the possible pooling of resources in all member countries to paint a certainly more attractive and feasible picture for large banks. According to the CARICOM Chair, it may very well come down to the point of hanging together or hanging separately.

 

Dean Barrow, Chair, CARICOM
“In the end when the Caricom mission begins its campaign it will involve not just talking to regulators and I imagine part of that conversation will then be to focus in on the declared willingness of the regulators to look at the infrastructure to see if it can be made less stringent while still retaining its effectiveness. But the mission will also talk to correspondent banks in the same way that Belize as an individual country has been attempting to do. We recognize that the conundrum of the correspondent banks not wanting to assume the burden of the regulatory requirements given that the returns from our business are fairly small is something that we have to address. Difficult as it is, notwithstanding that it doesn’t admit of any ready solution, one of the things we have agreed on is indeed if there can be some effort to pool our business, to say to correspondent banks in the US as we are trying to do here in Belize…a particular bank that we are approaching we are saying look you can have business from every bank in Belize if you will come – we hope that will make it worthwhile. We are trying to do the same thing on a region-wide basis. Also in a jurisdiction such as Montserrat where there are only two banks and they are having their status revoked, the question of having those banks merge – that might still not get you critical mass but in other jurisdictions it’s awkward…you can’t be telling banks what to do but the mission to say to our institutions listen…you hang together or you hang separately, and that might very well mean that you look at this question of mergers in order to achieve critical mass. Those are the sorts of things that we are going to go at, that the mission is going to go at, but we concede there are no simple solutions. It is going to take a great deal of doing. All we can say is that we are just as determined to pursue all possible means until we get the kind of resolution to the issue that we want.”

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1 Response for “Unified Approach is Best Option to Tackle De-risking”

  1. Ricky Malthus says:

    Barrow quit your mumbo-jumbo, jan kunu nonsense, and comply with the anti drug, money laundering laws. This foolishness about being a small country or small anything is just a strawman decoy nonsense. When money is transferred, the computers recognize numbers . If you deal in drugs and money laundering, a number is placed by that account and your account become toxic. So Barrow, comply and you can play again.

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