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As the lending rate debate rages on, the presidents of the Jamaica Manufacturers' Association (JMA) Doreen Frankson, and the Jamaica Agricultural Society (JAS), Norman Grant, have expressed outrage at recent comments made by bankers in defence of their lending rates. In a statement, the two bodies restated their position. The following is the edited statement:
The members of the JMA and the JAS are shocked with the disdain that members of the Jamaican Bankers' Association continue to exhibit towards local small businesses, farmers and Jamaican depositors in general.
This action says to us that our money is good to take, but we are not good enough to benefit from commercial loans. This, of course, coming on the heels after government used Jamaican people's money to "bail out" the financial sector to the tune of $140 billion is unacceptable.
PEOPLE HAVE AGENDAS
It was further reported that the banker stated that both organisations, which have been championing the cause of the manufacturing and farming communities, have "agendas". He is correct we have an agenda and that agenda is a mandate from the members to advocate for reduction in spreads to ensure that the small business sector, the farmers and businesses in general can benefit from competitive interest rates to expand employment and create wealth.
This we feel is the right agenda. We feel that any bank, which takes our deposits, must be willing to lend to its depositors and not send us to look outside of the local commercial banking sector for financing.
In fact, this recommendation should be of interest to the Ministry of Finance which should want all money to pass through the banking system and not avoid it as this banker is proposing. We find this recommendation to be quite surprising.
CAPITAL MARKET ALTERNATIVE
The JMA/JAS cannot accept the comment of the capital market alternative, as small businesses cannot meet the criteria set by the capital markets. They will need to depend on the local banks to help them grow their businesses. In fact, the senior banker alluded to that fact, noting that the capital market was a source for large enterprises. It is very disheartening to note that spreads are high. But it is an insult for a senior banker and a member of the Jamaica Bankers' Association to say to the business community "look outside of the commercial banking sector for financing".
The members of the JMA and the JAS are shocked with the disdain that members of the Jamaican Bankers' Association continue to exhibit towards local small businesses, farmers and Jamaican depositors in general.
This action says to us that our money is good to take, but we are not good enough to benefit from commercial loans. This, of course, coming on the heels after government used Jamaican people's money to "bail out" the financial sector to the tune of $140 billion is unacceptable.
PEOPLE HAVE AGENDAS
It was further reported that the banker stated that both organisations, which have been championing the cause of the manufacturing and farming communities, have "agendas". He is correct we have an agenda and that agenda is a mandate from the members to advocate for reduction in spreads to ensure that the small business sector, the farmers and businesses in general can benefit from competitive interest rates to expand employment and create wealth.
This we feel is the right agenda. We feel that any bank, which takes our deposits, must be willing to lend to its depositors and not send us to look outside of the local commercial banking sector for financing.
In fact, this recommendation should be of interest to the Ministry of Finance which should want all money to pass through the banking system and not avoid it as this banker is proposing. We find this recommendation to be quite surprising.
CAPITAL MARKET ALTERNATIVE
The JMA/JAS cannot accept the comment of the capital market alternative, as small businesses cannot meet the criteria set by the capital markets. They will need to depend on the local banks to help them grow their businesses. In fact, the senior banker alluded to that fact, noting that the capital market was a source for large enterprises. It is very disheartening to note that spreads are high. But it is an insult for a senior banker and a member of the Jamaica Bankers' Association to say to the business community "look outside of the commercial banking sector for financing".