customers us $ 5 per month to make purchases via debt cards. viewed as a source of customer irritation, client reaction was swift and decisive with large numbers of customers moving their accounts to institutions with less onerous fee structures, such as credit unions. fortunately, our regional banking system is in far better shape and enjoying a much greater degree of consumer trust – at least, we hope so. the regional banking system demonstrated remarkable resilience to the international financial crisis, thanks to the banks ’ conservative operating policies which left them with limited, if any, exposure to the type of toxic assets that contaminated the balance sheets of the banking system of many of the developed countries. also, the loan portfolios of our banks were largely funded from domestic deposit mobilization with little exposure to wholesale financing from external sources. bis central bankers ’ speeches there is the argument in some quarters that the international financial crisis was one of several factors that contributed to the collapse of cl financial and the stanford bank. while this may be true, the demise of these institutions was in the main self - inflicted. several macro - prudential indicators paint a fairly robust picture of the regional banking system. i have sought to show these indicators in comparison with those of the advanced countries in a few slides. i am fully aware of the problems with inter - country comparisons, but i believe that even allowing for definitions and other differences the data provide an interesting picture … … ( i ) table 1 shows that the regional banking system is more than adequately capitalized. banks in the region maintain capital adequacy ratios in a range of 15 to 20 per cent way above the statutory minimum of 8 per cent. in trinidad and tobago the average is 27 per cent. ( ii ) table 2 presents indicators of the profitability of the regional banking sector. while profitability, measured both by return on assets and return on equity has declined somewhat since the international financial crisis, by and large, the regional banking industry is still very profitable by international standards. the trinidad and tobago banks more so. according to the data barbadian banks have faced a sharp decline in profitability, as measured by “ return ” on equity. a recent article in latin american markets monitor predict “ tough years ahead ” for the banking system in barbados given the rising level of non - performing loans and the expected weak economic recovery. i don ’ t subscribe to an overly pessimistic outlook for the banking system in barbados. though i agree that there could be challenging times ahead. one

a high of 156 in 2004 to about 20 in 2010. i should note that the ombudsman ’ s terms of reference do not cover the fees, commissions and interest rates charged by banks. i should note also that the level of fees and commissions remain a principal area of complaints and irritation for bank customers. our bankers insist that fees and commissions charged by banks in trinidad and tobago are the lowest in the region. if that is correct the level of these fees in barbados may also be a problem, as indeed they are in jamaica. the central bank in 2007, also launched ( in collaboration with the central government and the financial sector ) a national financial literacy programme ( nflp ) aimed at increasing the level of financial education and awareness of the population. the programme which has been funded by donations from stakeholders has targeted primary and secondary schools ; small and micro - businesses ; employees in the workplace and community groups. under the nflp, the central bank has launched a national campaign entitled “ savings for retirement ” and is promoting retirement planning in many communities. the issue of consumer protection in the financial services industry is, surprisingly, not a contentious one with some bankers insisting on the free play of market forces and competition. the fact is however, that particularly in small economies like ours, where sheer size constitutes a barrier to entry and where there are information asymmetries, there is a case for the regulator to intervene to insist on adequate disclosure and to provide some level of protection for the most vulnerable groups. the challenge is therefore to balance regulation, competition and financial education to achieve the twin objectives of financial stability and consumer protection. let me say a few words on financial regulation in the region. it is a fact that the evolution of the financial sector in the region has outpaced that of the regulatory system. the gaps have been widest in the areas of insurance, credit unions and securities regulations but we are also lagging in respect of bank supervision which is our strongest forte. i know that many regional jurisdictions are currently in the process of upgrading financial legislation. in trinidad and tobago we recently enacted a new financial institutions act and are about to send a new insurance act to parliament. as regards supervision our supervisory authorities have taken the initiative to establish a regional colleges of regulators to more effectively supervise the international banks that operate in multiple territories. our regulators are now working on a regional crisis management plan that would inter alia : ( i ) seek to enhance information - sharing among regulatory authorities ; bis central bankers ’ speeches