Barbados Prime Minister Mia Mottley advocates for Caribbean banking reform

Barbados’ Prime Minister Mia Mottley has called for significant reforms in the Caribbean banking sector, urging greater diversity and competition to drive economic growth in the region.

Speaking at the conclusion of the 31st Afreximbank Annual Meeting and the Third AfriCaribbean Trade and Investment Forum in the Bahamas, Mottley criticized the sector’s lack of dynamism and highlighted its impact on regional economies.

A key issue Mottley addressed was the phenomenon of de-risking by banks, which she argued severely hampers the ease of banking in the Caribbean. Comparing it unfavorably to jurisdictions like Canada, where opening a bank account can take as little as 10 minutes, Mottley labeled the current two-to-three-month process in the Caribbean as unacceptable. She emphasized that Caribbean residents should not be subjected to such cumbersome procedures, recalling her own experience of easily opening a bank account at 16 in the Royal Bank of Canada.

While acknowledging the importance of due diligence, Mottley stressed that increased competition could streamline processes and enhance service quality. She also commended Afreximbank for its role in bridging connections between Africa and the Caribbean, highlighting positive impacts since the establishment of its regional office in Barbados.

Discussing recent financial activities, Mottley cited a substantial loan secured by Barbadian businessman Mark Maloney from Afreximbank aimed at bolstering local infrastructure and business expansion. She underscored the potential of leveraging local capital within the Caribbean and Africa for regional development, advocating for accessible investment opportunities that empower local economies without relying heavily on external assistance.

Furthermore, Mottley called for reforms in the global financial architecture to better support regional growth and stability, reflecting broader aspirations for economic resilience and autonomy within the Caribbean.