Nation maintains “clean and reputable financial service sector”
By VonDez Phipps
Reporter-SKNVibes.com
BASSETERRE, St. Kitts – IN his December 16 presentation of the fiscal review in the 2009 Federal Budget Address, Minister of Finance Hon. Dr. Timothy Harris said at a time when confidence has been lost in the Commercial Banking Sector in advanced economies, the nation’s Banking Sector “continues to grow and play a major role in the development of the country”.
He opined that the performance of this sector over the past years is an indication of the success of the various government programmes designed to enable citizens to increase their financial status.
“As of the end of December 2007, assets held by the Commercial Banking Sector have grown to EC$3.7 billion, representing a 14.7 percent increase over the amount of EC$3.2 billion at the end of the previous year. Deposits grew by EC$0.26 billion to reach EC$2.4 billion at year end while loans and advances also grew by EC$0.26 billion to reach EC$2.1 billion. The increase in loans and advances is attributed to increases in lending to the Distributive Trade, Construction and Personal Sectors. Liquidity in the banking system also remained quite healthy over the period under review.”
Dr. Harris focussed on the growth of the Development Bank and stated that the bank has played a major role in the achievement of federal development objectives. He informed that in the first ten months of 2008, the Bank approved 4,696 loans; 4,017 in St. Kitts and 679 in Nevis with a total value of $194.9 million. The lending distributed for student financing, housing-mortgage financing, commercial lending and industrial development totalled EC$65.5 million, EC$43.9 million, EC$38.9 million and EC$14.2 million respectively. ~~Adz:Right~~
With regard the Insurance sector the number of captive insurance companies registered increased by 15 percent during the first 10 months of 2008 and an additional 56 foundations, 108 private exempt companies and 100 private ordinary companies were registered in the same period. He also spoke to the ship registry which now has a listing totalling 686 ships that generated revenue of over $0.55 million for the period January 2008 to July 2008.
“In 2008, we [the government] have improved the Anti-Money Laundering/Counter Financing of Terrorism Legal Framework with the amendment of various pieces of legislation such as the Anti-Money Laundering Regulations, the Anti-Terrorism Act, the Proceeds of Crime Act and the Financial Services Commission Act. The Money Services Business Act was passed so as to ensure the proper regulation and supervision of the Money Services Sector.”
Harris also informed that in keeping with the government’s commitment to create a single regulation mechanism for the supervision of the Non-bank Financial Sector, the Financial Services Regulatory Department was assigned the duty of “regulating and supervising the Domestic Insurance Sector”.
