Caricom leaders are gravely concerned at the Region being labelled as a high-risk area for financial services and have established a Committee of Finance Ministers to address the matter.
In financial circles the Region being labelled ‘high-risk’ is especially injurious as it has resulted in correspondent banks in the US and major banking centres in Europe evaluating risks versus rewards in doing business with indigenous banks, and banks in the offshore sector.
“Heads of Government noted that in many cases the small indigenous banks were unable to provide a high level of reward causing correspondent banks to cease their relationships with them which could have the result of forcing those banks to close their doors,” a communique issued at the close of the 26th Inter-Sessional Meeting of the Conference of Heads of Government said. The Heads of Government have therefore established a Committee of Finance Ministers to work with the Caribbean Association of Banks to develop a plan to deal with this matter, including by making strong representations at the World Bank, the IMF, within the Commonwealth and La Francophonie and, if necessary, at the United Nations.