BUSINESS MONDAY: Don’t expect too much from commercial banks: Dukharan

ECONOMIST Marla Dukharan is cautioning Barbadians not to expect too much from commercial banks in terms of support during the ongoing COVID-19 pandemic.

She has said that while the banks have done a lot, they are nonetheless restricted by the regulators on the things they can do and that their first responsibility is to protect their depositors’ money.

The Economist indicated that banks are required to maintain a certain level of capital. That capital, she explained, is at risk when there is less repayment coming into the institutions.

While acknowledging that the banks are well capitalised – meaning they have room to do things, there is still a certain amount of things they cannot do.

Since the onset of the COVID-19 crisis a year ago, the banks – which are all foreign owned – have assisted their clients by granting moratoriums on loan and credit card payments in light of those clients having lost their jobs. But pressure continues to mount on them for the services to continue, with the period for the assistance having come to an end.

However, Dukharan believes that businesses which make sacrifices to keep on their workers should be given some assistance.

“People think banks are profitable and should be more lenient, but there are limits to what they can do,” she added.