BASSETERRE, St. Kitts - IN spite of the economic downturn, Commercial Banks in the twin island Federation of St. Kitts and Nevis weathered the storm and held their stability.
While presenting the 2011-2012 Budget Address in the St. Kitts and Nevis National Assembly on Tuesday (Dec. 13), Prime Minister and Minister of Finance, the Rt. Hon. Dr. Denzil L. Douglas said that despite the uncertainty in the global financial markets, our commercial banks have remained well capitalized and stable.
"As of December 2010, the assets held by the commercial banks totaled $5.0B, representing a 10.4 percent increase over the $4.6B recorded at the end of 2009," Dr. Douglas said.
He stated that during the year under review, deposits as well as loans and advances grew.
He explained, "Deposits increased by 6.0 percent to $3.2B while loans and advances grew by 7.0 percent to $2.5B."
He said that the increase in loans and advances is attributable to increased lending to the Construction, Tourism and Personal Sectors.
Additionally, the Finance Minister explain that the Development Bank remains a key player in the empowerment of our people in the advancement of our development agenda particularly during this period of economic slowdown.
"During 2010, the Bank approved 572 loans with a total value of $17.8M. Some $6.9M was allocated to higher education, $3.7M to general and business lending and $2.0M to mortgage financing," the Prime Minister enunciated.
The Development Bank is said to have remained proactive in the expansion of its mandate to provide financing for burgeoning businesses and personal advancement at an affordable rate.
In so doing, it has formed an alliance with the Sugar Industry Diversification Foundation (SIDF) to provide access to a loan facility totaling $8.0M for the benefit of the Small Hotel and Restaurant Sectors.
