Banks “cannot do what they’re in business to do” with the Central Bank of The Bahamas maintaining the lending cap on commercial institutions, with the high level of consumer debt creating further worries regarding the soundness of this nation’s financial system.
Larry Gibson, a principal with Colina Financial Advisors, said that remarks made by Central Bank governor, Julian Francis, that total credit within this nation’s financial system was $4.2 billion, with $0.5 billion of this repaid per annum, indicated that loans were on average fully repaid every eight years.
“Their [the Central Bank] real concern is to protect the foreign reserves, so they are not eroded very quickly if tourism declines and consumer demand stays strong,” said Mr. Gibson.
Source: Neil Hartnell, The Tribune
