Apr 2015 Financial News

Non-performing loans declining, but still a problem (Barbados)

Apr 27, 2015

ALTHOUGH the number of non-performing loans (NPLs) at CIBC First Caribbean International Bank have declined, there are still a number of them on the books of the bank.

This was stated by Rik Parkhill, CEO of the Bank, who revealed the information to local journalists. Parkhill said that the number of loans categorised as non-performing had declined over the last three years.

“And it looks like this year that the pace of that decline will increase at least modestly,” the CEO said.

“It is still a problem and the economy is still fragile and there is a confidence issue still where people are a little bit reluctant to move forward with plans and borrow money,” Parkhill further explained. However, he noted that as more tangible signs of the economy strengthen, that will be in good shape.

Commercial banks had been paying particular attention to NPLs during the height of the economic decline in Barbados. In an overall picture of delinquency of the local banking industry, the September 2014 Financial Stability Report said that substandard loans accounted for about 71 per cent of NPLs, while the doubtful and loss category represented 14.8 per cent and 13.9 per cent respectively.

Source:
Barbados Advocate
Monday April 27, 2015

http://www.barbadosadvocate.com/newsitem.asp?more=business&NewsID=43056