Remarks at the Bankers Association of Trinidad and
Tobago (BATT) 20th Anniversary Event
Alvin Hilaire, Governor
Central Bank of Trinidad and Tobago
November 1, 2017
1. A very warm welcome from the Central Bank of Trinidad and Tobago to
our financial community and to the members of the Bankers Association of
Trinidad and Tobago in particular on the occasion of BATT's 20th
anniversary.
A double-decade birthday marks a very special time-just breaking out of the
teenage years-and provides a great opportunity for both reflection on the past and
looking forward to the future.
2. For many Trinbagonians, banks are our first introduction to the financial
world. When I was a child (not too long ago) it was a serious rite of passage to be
escorted by one's parents to the neighborhood bank to open an account and to
deposit a few dollars. With no internet, LINX or ATMs, everything was cash,
personal visits to the tellers and the little red passbook to keep track of all your
precious transactions. Nowadays, with technology and electronic communications
the form of interaction has changed somewhat-becoming a bit more impersonal at
times-but the fundamental relations with our bankers remain basically the same.
From small cash deposits, to salary deposits, car loans, mortgages, credit cards and
investments, our dealings with banks follow us over the years and help to define
key stages of our life cycle.
3. Banks in Trinidad and Tobago have a lot to be proud of. Through thick and
thin they have made important contributions, mobilizing savings and channeling
these to individual, private corporate and public sector borrowers. Taken together,
banks' assets currently amount to TT$137 billion which is equivalent to 43 per
cent of the entire financial system's assets in the country.
Of course, as any nation
we have had our share of bank failures and challenges but we have always
weathered the storms. It is inevitable that fresh tests will emerge, especially in a
world where we are financially integrated internationally, speed of communication
and capital movements can be instantaneous, and domestically we are faced with
reengineering an economy away from a long dependence on energy exports. But I
have absolutely no doubt that we have the technical capacity, will and energy to
survive, adapt and thrive in the decades ahead. Now that I have ventured into the
perspective of taking the long view, I'd like to touch on three related issues for
further active consideration of our bankers gathered here:
4. The first involves further bolstering financial inclusion in Trinidad and
Our country became the 100th member of the international body, the
Tobago.
AFI's main role is to
Alliance for Financial Inclusion (AFI) in 2013. strengthen the
ability of individuals across the globe-especially low income persons in remote
areas-to safely and meaningfully participate in organized financial activities. In
certain parts of Africa, East Asia and Latin America many communities are
effectively cut off from the banking world-most transactions are by barter, or
cash, and few persons have or even know what a bank account is. Trinidad and
Tobago is somewhat different-we do have a widespread banking presence due to
the country's income level, our relatively small size and our
long history with
banks. Nonetheless, we still need to work more on encouraging, embracing and
keeping the participation of several communities in the formal financial sector. In
this regard, it is important for banks to pay particular attention to the specific needs
of the young, the elderly and the differently abled among others as you roll out
your array of services and outfit your facilities. We at the Central Bank are
boosting our National Financial Literacy Program in 2017/18; we are happy to
partner with BATT in common areas so that the man in the street has a better
understanding of the importance and the options available for savings, investments,
budgeting, retirement planning as well as the potential risks in the financial world.
5. A second issue relates to transparency and fairness in dealing with customers.
As we develop as a society, financial transactions can tend to become more
complex and opaque-sometimes you get the impression that you need to enlist a
Senior Counsel to get you through the fine print of the contract for setting up the
most basic savings account! It is therefore imperative that banks and other
financial institutions commit to meaningfully simplifying their agreements and
making every effort to ensure that their customers understand the terms and
conditions. We at the Central Bank are encouraged by the relaunch of the Banking
Code of Practice a few days ago, but like Mr. Stoddard, the Financial Services
Ombudsman, we look forward to the principles of transparency and fairness being
applied fully in practice. One specific example I would call to mind is the
Guideline on the Mortgage Market, jointly developed between the Central Bank
and BATT, to cover information disclosure and predictability in the adjustment of
interest rates on loans on what for most people represents their major lifetime
investment-their homes.
matter I'd like to touch on
6. The third involves banks using their influence to
lead by example in the corporate governance field. At present we have 8
institutions that have been licensed as commercial banks in Trinidad and Tobago.
These licenses offer a privilege and responsibility to operate in a specific financial
space. Banks have enormous access to private information, financial resources,
big and small businesses, public sector agencies and the international network of
financiers. As noted earlier, at this juncture in our economic history, the country is
making significant adjustments to the decline in energy prices. But we have been
here before and, with appropriate management, the country will adapt to the cycle.
committed to the long term, I'm sure that you will continue to analyze
As bankers
the situation and options dispassionately, put forward your recommendations
clearly and operate in a spirit of give-and-take as the country adapts to current
circumstances. In the corporate governance field, due to their high visibility, banks
are well placed to implement best practices in how their boards operate and in
demonstrating integrity in the conduct of their affairs. On a related note, I am very
pleased to note the participation and leadership shown by banks and BATT as a
whole in (non-financial) issues that affect many of us, including seminars on
gender-based violence, non-communicable diseases and genetic issues such as
breast and other forms of cancer and Downs'
Syndrome, and sporting and cultural
events. Well done! At the Central Bank, our staff are busy collecting one cent and
other coins over the past few months; the Central Bank will match those
contributions and use the proceeds to purchase testing strips and other equipment
for the Diabetes Association at the end of the year. We look forward to exploring
opportunities to partner with BATT on community ventures in the future.
7. With these few remarks, I would like to once again congratulate BATT on its
20th anniversary. While as regulator and in the conduct of monetary policy, we
will certainly not always agree on all issues, we at the Central Bank look forward
to continuing to engage forthrightly and honestly with the banking community in
further strengthening the contribution of the financial system to our beloved
Trinidad and Tobago.