Central Bank of Barbados
Tom Adams Financial Centre, Spry Street, Bridgetown
P.O. Box 1016
Telephone: (246) 436-6870: Fax. (246) 436-7836
E-Mail Address: info@centralbank.org.bb
Website: www.centralbank.org.bb
Remarks by
Cleviston Haynes, Governor, Central Bank of Barbados
at the
Opening of the New Branch of Consolidated Finance
One Welches, St. Thomas
Thursday, January 31, 2019
I am delighted to celebrate with you, the launch of this new corporate branch in the growing
Welches business district. Firstly, I would like to extend congratulations to the Head of the
branch, Mr. Darrell Wilson, an experienced financial services professional, and his staff, as
they set out on this exciting journey, anxiously looking forward to seizing the available
opportunities and overcoming the inevitable challenges that lie ahead. I have no doubt that
the depth of experience and understanding of the Barbadian financial landscape that you
bring will augur well for the success of this new branch, as you seek to expand Consolidated
Finance's foothold in the corporate and commercial lending market.
Consolidated Finance is now a household name with a long history in Barbados, having been
established as a wholly-owned subsidiary of the McEnearney Alston (Barbados) Group. The
company has built an excellent reputation, expanding its range of financial products and
services ranging from vehicle leasing arrangements to offering fixed deposits, real estate
financing, merchant banking and foreign exchange trading.
As regulator, the Bank has been able to monitor your growth and we are satisfied with your
commitment to enhance your systems for risk management to ensure compliance with
regulatory standards.
We welcome your decision to expand your footprint in the domestic financial market at this
time. It demonstrates confidence in your ability to manage an expanded portfolio. Equally
important, it shows confidence in the future prospects for the Barbados economy and
embodies your commitment to helping the Barbados economy to recover and strengthen
over the medium term.
As I reported only yesterday, the economic indicators for the Barbadian economy are
displaying encouraging signs. But the prospects for durable growth over the medium term
require a strong recovery in investment, both foreign and domestic. I believe that the
domestic financial sector has an important role to play in this area, as it seeks to allocate
over time, the substantial resources it has mobilized from our citizens.
In recent years, credit demand has been weak and the banking sector has been marked by
excess liquidity. We all know that in the past year, financial institutions have had to cope
with the implementation of a new accounting standard and with the debt restructuring of
Barbados domestic government securities. However, the sector has proven resilient with
capital remaining above statutory requirements.
Your foray into corporate lending provides an opportunity for you to diversify your business.
At the same time, it presents a challenge, as you compete with brands well established in
this area, with larger capital bases and access to mature risk management systems. Your
goal must be to create a niche area for products and quality of service in the financial
services market that will differentiate you from your competitors. Your challenge will be to
attract small and medium size credits, to provide financing and where possible, advice to
enable these entities to grow and flourish.
Your expansion occurs at a time when the Barbadian financial industry is gradually evolving,
with an increasing push to offer new types of financial products and services. Technology is
driving developments with increasing emphasis on on-line banking and digital payment
solutions. I believe that these developments will enhance efficiency and productivity and
therefore benefit the economy. Already we can see a future in which traditional instruments
such as cheques and cash will play second fiddle to technological transfers of money within
the public and private sectors. These technological innovations will impact individuals,
corporates, financial institutions and government, and I encourage you to align your systems
to cope with the emerging trends.
The adoption of new technologies is a positive development for a small economy like ours
with highly concentrated markets. It creates the potential for increased competition, an
expansion of the range of products and services available to the public and an improvement
in the public's access to affordable financial services. The Central Bank is therefore
committed to fostering a regulatory environment that will enable existing or new firms to
expand and improve the quality and range of financial products and services.
In closing, let me reiterate that the opening of this branch provides an opportunity to
implement new approaches and offer financial solutions that can add vigor to the existing
credit market. On behalf of the Central Bank, I offer sincerest congratulations to ANSA
Financial Holdings (Barbados) Ltd and the management and staff of Consolidated Finance
Company Limited for the demonstration of the commitment and faith in the resilience of the
Barbados economy.
Best wishes for the future.
Thank you.