Apr 2015 Financial News

Banks must increase lending to small businesses (Barbados)

Apr 27, 2015

LOCAL commercial banks need to figure out ways to increase the level of lending to the small business sector in Barbados.

Rik Parkill, CEO of FirstCaribbean International Bank, said so while fielding a question from the media about concerns voiced by small businesses that they are not getting a good deal when it comes to financing by the established banking community.

He said that this is necessary because small businesses represent the backbone of the regional economy and one of the engines of recovery without incurring that higher level of default.

The sector has complained about the difficulties in securing financing from banks and reasoned that this is one of the main challenges to the sector.

“I think as a bank we have not had enough interaction with the small business sector,” Parkhill told a news conference.

“It is certainly an area we have expanded our presence in over the last year with a new small business offering and we would like to grow our loan book as well as the level of business we do with small businesses,” the CIBC FirstCaribbean official declared.

However, he added that traditionally most of the commercial banks have had a higher rate of default on small business loans than perhaps on other customer segments.

Source:
Barbados Advocate
Monday April 27, 2015

http://www.barbadosadvocate.com/newsitem.asp?more=business&NewsID=43058