geisha.kowlessar@guardian.co.tt
Central Bank Governor Dr Alvin Hilaire is advising this country’s commercial banks to reduce the bureaucracy when it comes to customers opening accounts.
This he said must be done to facilitate greater financial inclusion for the unbanked.
Speaking at the recent 25th anniversary of the Bankers’ Association of T&T (BATT) the Central Bank Governor said more people ought to have access to financial services.
“Why do you have to have all these forms of ID? Of course, we want to be careful about anti-money laundering and so forth. Let’s take risk into account, let’s take what we know of people, let’s give them the benefit of the doubt. Let’s move this thing on financial inclusion,” Hilaire told members of the banking sector at the event.
However, according to Hilaire financial inclusion must mean more than just numbers.
“Let’s commit to meaningful financial inclusion not just moving from 19 per cent, to four per cent to two per cent or one per cent unbanked.
But really embracing our clients, I’m saying ours because we are all part of this.
“Let’s go back to the days when you encouraged schoolchildren to open an account, schoolchildren from all communities to open accounts. They may not bring you profits now but over time they build brand loyalty,” he outlined.
Hilaire added, that the differently-abled are also important clients who may require certain facilities which banks need to take into account.
On the financial health of T&T’s banks, Hilaire said they continue to do well.
Noting that in 2019 bank profits totaled just over $3 billion Hilaire said the onset of the pandemic had negative effects as in 2020 profits went down to about $1.5 billion.”
“This is a sharp decline in one year but things started to pick back up. We had discussions, we talked about forbearance and everybody pulled together in the economy of T&T in managing the pandemic and bank profits went back up,” he said, adding that in 2021 bank profits registered just over $2 billion.
And in 2022, according to data for the first three quarters, the profits are on track for about $2.5 billion.
“So you have some gradual increases from a very difficult situation,” Hilaire added.
Also, he said the return on equity is a “healthy” 11.3 per cent at last call.
Further, Hilaire said the Central Bank remains encouraged by the pick-up in business which it has observed over the last few months.
