Business

Central Bank of Barbados Issues Market Conduct Guideline for Financial

Institutions

The Central Bank of Barbados has issued a market conduct guideline for all entities it regulates. The guideline will also extend to future recognised entities such as digital currency operators and fintech companies.

The guideline, which went into effect on July 12, 2024, details how these entities should carry out several aspects of their operations, including implementing fees and charges, opening and closing accounts, handling complaints, and ensuring that vulnerable groups have access to financial services.

Speaking during an event to introduce the guideline, Central Bank Governor Dr. Kevin Greenidge described the guideline as “necessary to ensure the financial system remains stable, it remains transparent, and it remains fair for all players involved.”

Senior Director, Bank Supervision, Cheryl Greenidge, noted that a number of the behaviours included in the guideline were already being practised by several financial institutions, but the Bank believed it was important to codify them to ensure Barbadians enjoy a consistent experience regardless of where they conduct their financial affairs.

Among the key aspects of the guideline is the process for banks and deposit-taking finance companies to institute new or increased fees. They must first request a non-objection from the Central Bank, and provide “a detailed rationale for the proposal, the impact on the licensee’s customers, together with any other supporting documentation” no less than 60 days before they propose to implement it. Should they receive a non-objection, they must then notify their customers at least 30 days before the fee goes into effect.

The guideline also outlines steps for making access to financial services easier for Barbadians with disabilities and other vulnerable groups, stating “licensees must ensure that all physical and digital banking facilities are accessible to everyone, regardless of age, disability, or economic status. This includes adequate signage, ramps, tactile guides, audio systems, wheelchair accessibility and digital interfaces that accommodate various disabilities.”

It also notes that in addition to all commercial banks being required to offer at least one no-fee account, they should also offer tailored, low fee accounts for vulnerable groups such as pensioners, minors, and students.

As relates to onboarding new customers, the guideline instructs commercial banks and deposit-taking finance companies to streamline the process by using the risk-based approach that is permitted in the Central Bank’s Anti-Money-Laundering and Combatting the Financing of Terrorism (AML/CFT) Guideline. It also states that these financial institutions should process the application and inform the potential client of their decision within three to five business days or, where that is not possible, provide the applicant with an update as well as estimated timelines for the decision.

With regard to closing accounts, the guideline mandates that “licensees must notify the customer in writing at least 30 days in advance, explaining the reasons for the closure and outlining any possible actions the customer can take to prevent it.” However, these, and other instructions related to account closures as well as opening denials, do not apply when they would contravene the financial institution’s obligations under the Money Laundering and Financing of Terrorism (Prevention and Control) Act and the AML/CFT Guideline.

The issue of customer complaints is addressed in the guideline, which states that “licensees must have a robust internal dispute resolution (IDR) mechanism that is easy to access, free of charge to the customer, and capable of resolving complaints in a fair, timely, and effective manner.” It also speaks to the channels through which customers should be able to lodge a complaint, and outlines what recourse customers have when a complaint is not handled to their satisfaction. (PR)

Business

Central Bank of Barbados Stands by its Economic Reviews

In response to a letter published in the Saturday Sun on August 17 questioning the Central Bank of Barbados’ economic report and analysis, the Bank reiterates its unwavering commitment to accuracy, transparency, and public trust – values that have been at the core of our institution throughout its 50- plus-year history. The Bank recognises the critical role that accurate, transparent, and objective economic reporting plays in maintaining public confidence, and takes considerable care to ensure that the information we publish is both reliable and reflective of current economic realities.

The economic data, including statistics on economic growth, nominal GDP, inflation, and unemployment, are produced following best practices. While the Barbados Statistical Service (BSS) is responsible for producing much of this data, we rigorously interrogate their submissions to ensure thoroughness and reliability. Our reports are grounded in robust statistical frameworks, supported by rigorous analysis, and are frequently reviewed by international partners such as the International Monetary Fund (IMF) to ensure accuracy.

The 2023 GDP estimates, produced by the BSS and reported by the Central Bank, have been reviewed and validated by an IMF technical assistance mission. This external review provides additional assurance of the validity of our data, which we stand by confidently.

Specific concerns were raised about our estimates of tourism earnings and their contribution to GDP. To clarify, the estimated performance of tourism earnings in the first half of 2024 is comparable to that of the first half of 2007, a period when Barbados also hosted a major international cricket event. In both instances, we observed a significant increase in the ratio of tourism earnings to gross domestic product – rising from 15.9 percent in 2023 to 20.9 percent in 2024. This is consistent with the increase observed from 22.7 percent to 27.5 percent between 2006 and 2007.

Tourism estimates for the first half of 2024 are supported by several key indicators:

Long-stay arrivals increased by 17.9 percent over the first half of 2023 (source: Barbados Statistical Service).
Hotel room rates rose by an average of 10 percent, with the second quarter showing a particularly strong increase of 13.3 percent over the second quarter of 2023 (source: Smith Travel Report).
Cruise arrivals recorded a 17.9 percent increase, with cruise calls rebounding significantly in the second quarter of 2024 (source: Barbados Statistical Service).
Food prices experienced a general increase of 5.3 percent, indicating that visitors paid more for food, contributing to higher tourism spending.
These data points collectively underpin our estimate of a 4.5 percent economic growth rate for the first half of 2024. We remain confident in our assessment, which reflects a strong recovery in the tourism sector post-COVID, driving economic expansion across other sectors.
We acknowledge the concerns raised by some Barbadians regarding the perceived disconnect between the economic reports and the actual conditions they experience. It is important to understand that while the economy may be growing, it can take time for the benefits of this growth to be felt by every member of society – a phenomenon observed globally, including in advanced economies like the United States. This is why we have consistently emphasised in our economic reviews the need for increased investments to achieve sustainable and inclusive economic growth that will improve the lives and livelihoods of all Barbadians.
We welcome public discourse on our economic reviews and are committed to engaging with stakeholders to address any genuine concerns. If discrepancies exist between our reported data and independent analyses, we invite dialogue to assess and verify these numbers. Our primary objective is to provide the most accurate and comprehensive picture of Barbados’ economic performance, even as we acknowledge the inherent challenges in producing projections in a dynamic and uncertain global environment.
We assure all Barbadians that there is no intent to manipulate or distort economic data. We will continue to refine our models and methodologies, ensuring that the Central Bank remains a trusted source of clear and accurate economic information.
Once again, we thank you for your concerns and look forward to opportunities to strengthen our processes and our relationship with the public. (PR)

Business

Work Progressing On Unlocking The Grid

Barbados has made significant headway in its quest to have its first procurement project for battery energy storage systems.

Minister of Energy and Business, Senator Lisa Cummins, said tremendous work had been undertaken to get the team to this point. During a recent press conference, at the end of her Ministry’s three-day Procurement Design Workshop with key partners, she stated that the entire pipeline had been contemplated for the introduction of battery energy storage systems.

Senator Cummins stated: “Based on the work that they (consortium of experts in storage systems) have already done, we can now identify where across the country we need to deploy battery energy storage systems in order to relieve congestion….

“The work is under way, and we’re closer now than we’ve ever been before to getting the first battery energy storage system.”

She explained that by deploying battery energy storage systems in the country, it would allow Government to treat to the broad issues on the grid, to create that stability and unlock, in this very first tranche of procurement, the first batch of persons whose licenses are awaiting connections to the grid.

Senator Cummins continued: “This is only the first batch of procurement. The expectation is that we will have subsequent procurement rounds, and we want to invite Barbadians to participate.”

Co-founder and Chief Operations Officer of RELP, Mauro Soares, explained that the technical work was ongoing. He said they had been collecting information and building a model for grid characterisation which would allow the team to set the strategy going forward and to maximise the value of battery energy storage systems to the grid.

Mr. Soares continued: “So, hopefully in a few weeks, … the Ministry will be publishing some documentation that will have lots of details on what will be procured; where; what technologies will be available; questions for the market to address; [and there will be] the possibility of commenting on those documents.

“And that will give lots of information for investors, local developers to work around their projects and do their homework, to be ready to go for competitive bid submission. Hopefully, before the end of the year, we’ll have final documents and early next year we might have bid submission happen. And soon after that, all the projects will be financed and constructed so that we can solve this issue as soon as possible.” The three-day Procurement Design Workshop allowed the Ministry of Energy and Business and key partners to discuss and make critical decisions with regard to procuring battery energy storage systems. The cohorts included RELP, Global Energy Alliance for People and Planet, the Inter-American Development Bank, Deloitte, the National Renewable Energy Laboratory, and the International Finance Corporation. (PR/GIS)

Business

Local Entrepreneurs Engage In YES Networking Event

Helping local entrepreneurs learn, share, empower, and build camaraderie was the focus of the Youth Entrepreneurship Scheme’s (YES) “Crop Over” networking event, held last Friday.

The second instalment of the event at The Penthouse, Limegrove Lifestyle Centre, Holetown, St. James, provided a unique opportunity for past and present YES clients and business network clientele to connect, build new business relationships, and foster valuable connections.

In his remarks, YES Manager, Ryan Moseley, told the entrepreneurs that another aim of hosting the event is to stimulate economic activity and to incite possible collaborations in marketing products.

Mr. Moseley encouraged attendees to leverage the event to gain valuable insights and form fruitful connections.

“Tonight is a night where we allow ourselves to benefit from interaction through fruitful discussion. Although it is a social event, the main theme is networking. We want persons to be free to discuss business, discuss their business ideas, share their experiences good and bad, so that the young and upcoming entrepreneurs can avoid some of those pitfalls and also make better informed decisions.

“So, network, network! I trust at the end there will be some fruitful discussions and there will be some good partnerships formed, and these will redound to further business, more business for you the entrepreneur,” Mr. Moseley said.

Organiser of the event, YES Business Development Consultant and Camp Director, Celia Collymore, explained that networking is known as an information gathering process, and it is a powerful relationship building practice, which can increase business opportunities and help entrepreneurs be more visible in the marketplace. So, as part of the event, persons also played games and won prizes, which came from YES clients.

Participants in the “Crop Over” networking sessions included a number of businesses offering agricultural products, artwork, food and food condiments, jewellery, and photography.

The Youth Entrepreneurship Scheme, with its motto “From idea to enterprise”, affords its clients, aged 30 and under, direct technical assistance; facilitation of access to financial assistance; a mentorship programme; an entrepreneurial development training programme; and accounting and marketing services. (PR/GIS)

Caption: Youth Entrepreneurship Scheme (YES) Manager, Ryan Moseley, chatting with a participant of the YES Crop Over networking event, held last Friday at The Penthouse, Limegrove Lifestyle Centre, Holetown, St. James