led to the dominance of the sector by a single company. in the non - bank financial sector we saw new competition entering by way of foreign and regional financial institutions. the credit union movement, which has grown in stature in the past few years, become a significant socio - economic organisation that caters in a large part, to a section of the population which had limited access to credit from commercial banks. they grew in strength and became as large as some of the smaller banks but stopped short of fully challenging them on their own terms. new entrants to the market led to commercial banks became highly competitive, bidding down interest rates by outdoing each other in the marketing of loans. the distribution sector continued to be an important recipient of credit, and the banking system facilitated this import orientation. financing of imports continued to receive a major part of the bank ’ s portfolio despite efforts to mitigate reliance on this sector. efforts to change this through credit controls worked for a time until methods were found to get around it through leasing, direct lending and other means of financing and until the emphasis on market forces made such approaches appear inconsistent with modern trends. the central bank through its discount schemes offered facilities to key sectors so as to give priority to the productive sectors – in an attempt to encourage a change in lending orientation but the demand for these services remained low. i take this opportunity to encourage the use of the small business guarantee services which have been offered by the central bank and which have been heavily underutilised. i would urge banks to encourage their customers to use them more frequently. drivers of change however, liberalisation of the financial industry over the past two decades has helped to support creative financial markets throughout the region, particularly in trinidad and jamaica, and seems poised to drive the same type of evolution in barbados. at the same time, changes in technology have lead to the creation of new financial products and services to automated teller machines to customer credit checks at the teller and to some the development of e - banking. these changing financial industry dynamics have facilitated a growing trend towards increased efficiencies but have entailed major capital outlays. increased liberalisation has been accompanied by an increase in the level of oversight and regulation of the financial system. while it is important not to over - deregulate the need for regulation particularly in the area of finance became more important. greater market orientation needed to be supported by policies that discouraged inappropriate behaviour, but encouraged competition, hence the regulatory framework for the financial sector

. even if the customer cannot be satisfied, they must nevertheless walk away having had a pleasant experience. these might not be what we think of when we think productivity, but they are the real sources of productivity, because they produce improved real value for the same input of labour and materials. how do private firms and government achieve improved productivity? • engage the worker ; • empower the worker ; • motivate the worker ; and • cultivate a community of the workplace, with an emphasis on sharing experiences, teamwork and helping each other to achieve our best performance. bis central bankers ’ speeches the future of our economy is in our hands. we must figure out for ourselves what is the way forward, led by our own wit and resources. each worker can make a positive contribution to their own future and the future of our country, by becoming engaged, motivating and empowering ourselves and those that work with and for us, and caring enough for the welfare and prospects of fellow workers that everyone helps out when the going gets tough. when that becomes the pervasive culture of organisations and the society, we will have become a formidable international competitor and a byword for excellence in the americas, europe and the rest of the world. that must be our steadfast goal. bis central bankers ’ speeches