And If The Banks Favour Whites Statistically – Is It About Race Or Ability To Repay A Loan?
The Barbados Bankers’ Association has heard the complaints, and now say they want proof.
Let’s see what BFP’s readers have to say about the situation.
Here is the article in The Nation News, and the comment section is open…
ONE OF THE ISLAND’S LEADING BANKERS is challenging those who accuse banks of continuing to favour Whites over Blacks when lending money to bring proof.
“I would like someone to back it up with actual hard stats because I don’t think it will show that that’s the case,” said Oliver Jordan, FirstCaribbean International Bank’s Barbados head as he fielded questions on the bank’s 2006 performance at a Press conference at the Rendezvous branch yesterday morning.
“There may be some historical issues, which one must accept in the society that we’ve come from, but certainly the fact of the matter is that I can’t think of any bank for that matter, and I would say so broadly, that would prefer to lend to a black person rather than a white person.
“Really, you look at the customer coming in, you look at the risk, and you make an assessment, plain and simple.”
… continue reading this article at The Nation News (link here)
A Barbados Free Press Reader Says…
Regular BFP’er “Reality Check” posted the following comment. We think its worth sharing…
Bankers traditionally want to lend to people and companies who don’t necessarily need or want their money. These people and companies get to negotiate how much they want, how much they will pay and on what terms. They got there over many years of discipline of paying back their loans on time and having built up a good credit rating.
International Bankers want to loan to countries because even third world countries are perceived as being less risky than many corporate and individual loans.
We know, in fact, that the economy of many third world countries in the past have been such that these countries can’t afford to pay back the principal let alone the interest. The international bankers don’t care because they have sold off their loan to customers and taken their fees. Then they get fees to renegotiate the reconsolidation of these loans. This includes the bankers such as Deutshe Bank who are currently lending money to Barbados for CWC etc
All other people and companies are at the mercy of the banks because you have to have capital to succeed or run any venture and they know it. Attitude and friendliness completely change under these circumstances.
I know of several small Barbadian businesses, even though the banks are well secured, that make their clients go through the hoops two or three times a year for completely unnecessary hassles.
People can’t even imagine how difficult it is if you are poor or never had money in the family, to pull yourself up by the bootstraps and go through the horrific exercise of trying to borrow money and run a business in any economy let alone a small island economy. A lot of the answers lay in the issue of education and proper role models.
It is difficult to succeed when your elected role models are siphoning millions and millions of Dollars from the treasury on poorly conceived and badly executed programs, such monies that only line their own pockets and will only have to be written off by the people of Barbados.
Maybe Barbadians should be electing persons who have integrity, accountability and transparency as part of their credit past and not persons who tell them what they want to hear and how they too can attach themselves to the trough.