Business

Minister calls for a closer working relationship with credit unions

Minister in the Ministry of Finance, Ryan Straughn, is calling for a closer working relationship with the credit union movement to assist in enhancing their safety net to protect members from risks posed by online transactions and actions.

Mr. Straughn made this appeal as he addressed participants attending the Barbados Deposit Insurance Corporation’s (BDIC) Bank Intervention Simulation at Courtyard by Marriott Hotel.

He reasoned that the inclusion of credit unions as “part of the ecosystem” was necessary since they “were now systemically important financial institutions”.

“In the same way that they are important systemically, then obviously, we now need to ensure that there is a level of coverage and participation, recognising.the potential risks that they may be exposed to, to properly ensure that we safeguard our citizens accordingly,” Minister Straughn stated.

The “evolution and revolution” within the financial sector, along with the emergence of technology, he pointed out, has made it easier for fraudulent activity to occur.

“Our security systems have to be ‘beefed up’ because online phishing is one of those things that could undermine the integrity of any financial institution in Barbados…. Therefore, collectively, our financial participants must work collaboratively to ensure that we mount a very strong robust response to cyber security, in order to give our citizens the comfort that when we do our business, whether…at home or…as we travel, do things and interface publicly, that we know that we have the infrastructure in place working collaboratively with regulators outside of Barbados to protect the stability and integrity of our financial system,” Mr. Straughn said.

He continued: “These issues today are front and centre of our policy considerations because when BDIC started in 2007, we didn’t have online payments in the way that we have today. E-mobile apps and payment services ecosystem have revolutionised in the last 17 years and will continue to evolve. Therefore, we must be cognisant of the need not just from a legislative perspective…, we also have to consider the IT infrastructure that we are setting up with respect to our financial institutions.”

The Minister queried whether in the event of a failure there was sufficient operational oversight by the regulators – the Central Bank of Barbados, the Financial Services Commission, Ministry of Finance and the BDIC – to take “action overnight” to contain the situation.

“I believe that this workshop is particularly important, and I want to say to Barbadians that this is nothing sinister that is happening here this week…. This is real life work that regulators have to do every single day on your behalf, and therefore, I welcome the opportunity to engage, understand, and learn from the experiences of what is happening outside of Barbados.

“This is important and to ensure that we work collaboratively as regulators…to say to Barbadians that we are doing the work that is necessary not just for today, but to ensure that we set in motion, the set of processes that will allow us to keep pace with what is happening globally…”, Mr. Straughn emphasised.

The Minister also spoke about the importance of communication in the event of a failure to clear up any misinformation, and to keep the public abreast of any action that was triggered by the BDIC.

Mr. Straughn noted that Barbados had one main asset, which is stability, be it at the political, financial, and social levels, and if a bank failure had to occur, it would have a significant impact on the country.

“In a small country like Barbados, bank failure or the notion of a bank failure will have a significant impact on all of our lives. Therefore, as we go through these exercises and understanding not just from the operational side what needs to happen, but from our perspective, the Central Bank as well as the Financial Services Commission, working collaboratively with BDIC, is important for us to see the signals well in advance, in order to ensure that BDIC never has to implement anything that we may simulate this week. And I think that is the basis on which I preface my remarks because stability is the only thing that can keep Barbados above board,” he said. (PR/GIS)

Caption: Minister in the Ministry of Finance, Ryan Straughn, speaking at the Barbados Deposit Insurance Corporation’s (BDIC) Bank Intervention Simulation at Courtyard by Marriott Hotel

Business

WORLD BANK TECHNICAL ASSISTANCE MISSION OCT 7-18

Central Bank of Barbados Partners with the World Bank to Modernise Local Payments System

During April to July 2024, the Central Bank of Barbados engaged in extensive discussions with financial institutions, the World Bank, and other key stakeholders to assess and enhance the local payments market an infrastructure. Following these talks, the World Bank conducted a thorough review of Barbados’ legal and regulatory payments framework and evaluated the Real Time Payments (RTP) system. As a result, the Central Bank, in collaboration with the World Bank, has launched the Barbados Payments System Modernisation Project.

To advance this initiative, the Central Bank will host a World Bank Technical Assistance Mission from October 7–18, 2024. The mission will provide updates on the project’s progress and gather feedback on the next steps. Key areas of focus will include legal and regulatory support, oversight, instant payments system interoperability, payments system usage, and digital financial literacy. (PR)

Business

Barbados To Host Regional Policy Meeting October 8 – 10

Barbados will serve as the host nation for the upcoming Regional Policy Meeting organised by the Caribbean Policy Development Centre (CPDC) from October 8 to 10.

This event, funded by the Open Society Foundations (OSF) and the European Development Fund (11th EDF), will be held at the Crane Hotel in St. Philip.

Minister of Labour, Social Security and Third Sector, Colin Jordan, will deliver the feature address during the opening ceremony on Tuesday, October 8, at 9:00 a.m.

The Meeting will see regional policymakers, civil society organisations, and international partners gathering to tackle the Caribbean’s most pressing challenges, including sovereign debt, food and nutrition security, and to chart a new course for governance, development, and climate resilience, all aimed at improving the lives of Caribbean people.

Speaking about the important timing of the upcoming meeting, Officer in Charge at the CPDC, Richard Jones, stated: “Now it is of paramount importance as Caribbean nations face a convergence of complex challenges that threaten to derail sustainable development and the well-being of their citizens. At this critical juncture, the region grapples with persistent poverty, rising inequality, food insecurity, and the existential threat of climate change.”

According to data provided by the CPDC, small economies, burdened by the legacy of colonial extractive practices, remain vulnerable to external shocks, such as global price fluctuations and natural disasters. Climate change, in particular, presents a grave risk, with increasing hurricanes and rising sea levels threatening entire economies, especially those reliant on tourism and fisheries. The Caribbean loses an estimated three per cent of its GDP annually, due to natural disasters, underscoring the urgent need for robust, coordinated regional responses.

To address these critical issues, the Regional Policy Meeting will feature an impressive lineup of regional and international thought leaders who bring deep expertise in policy, development, and advocacy, including:

Jwala Rambarran, former Governor of the Central Bank of Trinidad & Tobago, who will address the urgent need for financial stability and reforming international financial institutions.
Grace-Ann Cornwall, Social Development Professional, will provide insights on empowering vulnerable groups and NGOs across the region.
Christon Herbert, CPDC Policy Officer, will lead discussions on climate resilience, insurance solutions, and disaster risk financing.
Meghna Abraham, Director of Open Society Foundations, will highlight the importance of international solidarity in achieving sustainable development goals.
Jeremy Stephen, economist and development finance expert, will present innovative approaches to debt relief and financial stability.

Other key speakers will be Assistant Secretary-General CARICOM Single Market and Trade Ambassador Wayne McCook; Director and Senior Research Fellow, Sir Arthur Lewis Institute of Social and Economic Studies, The University of The West Indies, Cave Hill Campus, Dr. Don Marshall, and Florida-based International Consultant on Food and Nutrition Security and Sovereignty, Dr. Tigerjeet Ballayram.

Agenda – “The Main 8”

Over the three days, the meeting will drill down into eight critical policy areas under the theme “Forging Ahead”, which addresses the eight most urgent challenges threatening progression in the region:

Sustainable Development
Reform of International Financial Institutions
Debt Relief and Financial Stability
Empowerment of Vulnerable Groups
Capacity Building for NGOs
Food and Nutrition Security
Climate Resilience
Good Governance

Mr. Jones, stated: “These areas are not only crucial but also interconnected. For example, the Caribbean’s food security is directly impacted by climate change, while sovereign debt threatens the region’s ability to invest in resilient infrastructure; we will therefore focus on comprehensive solutions that encompass a range of considerations.”

Noting that progress was already underway by the CPDC in many of these areas, he added: “By building on existing projects and facilitating high-level discussions, the Meeting seeks to generate momentum for collaborative action on food security, financial mechanisms, and policies that prioritise the empowerment of vulnerable communities, ultimately fostering a more resilient and equitable Caribbean.” (PR/GIS)

Business

Annual Education Awards Ceremony

Light and Power Employees Co-operative Credit Union Limited (LPECCUL) Celebrate

The Light and Power Employees Co-operative Credit Union Limited (LPECCUL) recently hosted its annual Education Awards and Trevor Browne Scholarship ceremony; this event recognises academic excellence and promotes the importance of education within the community. This year, nine junior saver members who would have sat the Common Entrance Examination were awarded. Each student received prizes and cash vouchers. While the Trevor Browne Scholarship, was awarded to Melissa Austin, who is currently pursuing a degree in Physical Therapy in the Faculty of Medical Sciences at UWI Mona Campus.

The highlight of the event was an inspiring keynote address delivered by Lt. Col. Trevor Browne, a founding member of LPECCUL, who shared his insights on the importance of education and personal development. His words were echoed by the President, Sheena Edwards, who emphasized the credit union’s ongoing commitment to supporting the educational aspirations of its junior members and their families. Additional remarks were given by other board members and members of the management team, all underscoring the role of financial literacy and good budgeting practices in shaping the future of the next generation.

Lt Col Trevor Browne presents scholarship

In addition to the presentations and speeches, the students received valuable guidance on financial literacy, underscoring the Credit Union’s philosophy of promoting financial empowerment from a young age. The event aimed to equip students with knowledge and tools to manage their financeswisely, as they move forward in their academic journeys.

Once again, congratulations to this year’s awardees for their performance in the Common Entrance:

Teyen Bostic – The St. Michael School

Maria Gill – Christ Church Foundation School

Neymar Gill – Graydon Sealy Secondary School

Rommaldo Holford – Queen’s College

Nathan McKenzie – The Lodge School

Remy Nurse – The St. Michael School

Akil Priddee – Challenor School

Jaylan Priddee – Deighton Griffith School