BVI banks need to take more risks to encourage investment locally
Opposition legislator and businessman Mark Vanterpool has questioned the presence of locally-based banks who he criticised for being averse to taking financial risks in the BVI.
“As a territory and as a country, we must understand how they’re going to operate, why they’re operating in that way, and do they really serve a purpose in our territory?” Vanterpool said in the House of Assembly on Thursday.
During the sitting, legislators debated the Virgin Islands Investment Act, 2020 which was introduced to modernise the way business is done in the BVI and to make the territory more competitive, secure, and more attractive for business and investment.
But Vanterpool was adamant about emphasising the crucial role of banks play with regards to investment in the BVI. He insisted that they ought to be for facilitating since all investors need a source of funds.
“If you’re not addressing the banks’ purpose in the Virgin Islands, then the investment climate – even for foreigners – is not the right climate,” he asserted.
Bad-debt ratio
Vanterpool — who said he has good personal relationships with all his banks — shared a conversation he had with a banker about why the BVI was not taking more risks and lending more into the local economy. The banker reportedly said the BVI has one of the lowest bad-debt ratios in the world, particularly with his financial institution.
But the legislator argued that while banks can measure and minimise their risks, they have to take risks nevertheless.
“If our banks are not prepared to take risks, to lend to our people, [then] why are they here?” Vanterpool questioned. “Banking involves risks, any investment involves risks.”
He also decried the changing relationship that banks have developed with their customers over the years. He said: “Our banks have become aloft, and the customer is just a number – no longer personal banking.”
Vanterpool insisted that a proper approach needed to be found to encourage banking that would help the territory’s investment climate so that locals would be able to invest.
Copyright 2024 BVI News, Media Expressions Limited. All Rights Reserved. This material may not be published, broadcast, rewritten or distributed.
You are so correct Mark. Everything in these Banks are so much more difficult than the other areas where the same Banks conduct buisness.
Two and three % on mortgage in the USVI but 5 and 6 % in the BVIs from the same Bank. Even with Republic Bank with here and the other Caribbean islands where they operate. The customers in those countries have it Much easier in similar circumstances.
They like talking bull about difference in population but that’s bull.
Just look at the internet and phone system. We are paying more in the BVIs and getting so much less in quality and service. Isn’t that a grave matter for concern.
The BVIs is the bread basket and NOD nore VIP is doing absolutely nothing about this because the politicians only care about themselves and not the country.
Less talk and more action.
Actually think on this – it’s the government the bank finds risky. Look at this instability and policy failure – who wants to invest?
Give belongers more money to waste in the USVI and the states and come back brokes to thief, then some family member in the bank cancel the payback and get the ball rolling again lmfao, the island people tax going to cover that right, but wait yall hate outsiders, aint that funny how scotia bank had to sell out.
“Outsiders” hate BVIslanders too, so what us really the complaint here?
And for good reasons.
Hate belongers to you said? So your admitting that you all do hate us oookkkkkkkk
Can you say that again more clearly?
BVI is everyone’s “cash cow”.
You act like this place rich but that only when you put us up against poor caribbean countries. This place has real poverty. The stats are skewed by a few very wealthy ppl. No problem with that but state the real facts.
With all the mismanagement and corruption, investment in the BVI is far too risky for any properly regulated bank
Once the Brits take over we will see real estate market explode, interest rates down and investment. The corruption and closed market catering only to the politicians, cronies and family has kept the investors out. Who wants to invest when Mark has his hand in the investors p****t?
Hope so.
Hoping too that the current dominant demographic which as demonstrated, is an impediment to a positive future for the VI and its people, will shift.
Hope that the Monaco model would be seriously considered and soon adopted,
Invest in place like pusser’s
Mr v, you know why. Your jurisdiction provides a greater return on investment with banks being risk adverse. Developing islands tends to attract more of the riskier investment for more reasons than I care to explain. Until more advance and balanced policies are brought forward, the people of the BVI will always help to keep the mega yatchs sailing.
Its clear to me that no one blogging here has ever run a bank or worked at a management level in one. Banks dont need to make loans to be profitable anymore and havent for decades. Its far easier and safer generating fee income versus net interest margin. Just look at the lines outside every bank in town on friday and tell me you really think these banks should be lending? Why take a risk lending here? There is little to no regulations and collateral repossession is a nightmare. Better to keep earning the fees.
In all actuality if I need a loan I going to WEST bank instead of 1st Bank and the rest they are criminals.
Brother, you can go to any ‘bank’ you choose for a loan.
As long as you can repay it.
These banks can’t even operate a teller line! You want them to invest your money?
This is the biggest nonsense story I have seen. The only reason people put up with this incompetent service is because it’s the only place to cash your paycheck. In the BVI it’s a lot less risky to stuff your money in your mattress.