We explore banking fees and the enhancement of access to finance in Jamaica. Septimus “Bob” Blake, President of the Jamaica Bankers Association and Fitz Jackson, Member of Parliament for St Catherine Southern, joined the CVM Live Panel Discussion to explore the topic.
In a response to Prime Minister Mia Mottley’s Statement “If we want money for the financial sector and development, then we need to appreciate that loan deposit ratio of 55% when the developed has a ratio of 80%,” Mr. Jackson noted that banks were created to mobilize deposits to be used, so persons could go into business and for businesses to strive, economies to grow and among other things. He also noted that a second statement from Mottley regarding previously when banks traditionally relied on lending, but have now redesigned their business model to a low-risk one, which sees them lending less and loans are not the primary source of revenues, but now extracting fees from deposits.
Meanwhile, Mr. Blake notes that Mottley’s statement can be interpreted in two ways; one it can be interpreted that she is emphasizing the critical role of banks in terms of national development and that she is reiterating that the banking industry is a key part of the solution to the challenges that we face. He also added that a second take away is that she is challenging the banking industry to remain current and relevant and to adjust its business model.
