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Strong position hoped for on Caribbean financial sector
| Published on Monday, June 29, 2009 | Email To Friend Print Version |
| GEORGETOWN, Guyana — Guyana’s President Bharrat Jagdeo, the incoming chairman of the Caribbean Community (CARICOM) has expressed a strong desire that a unanimous position on the financial sector would result from the 30th CARICOM Heads of Government meeting to be held here from July 2-5.
“How are we going to strengthen our regulatory and supervisory agencies so that we can prevent or minimize the risk of future financial sector contagion which has…devastating impact on the rest of our economies?” he asked. This, he said, is what must be answered, adding that it would be good to establish a Caribbean-wide position early because the process of reform of the financial institutions and changing the legislative framework under which they operate will be a lengthy one. He stressed that the Caribbean needs to start addressing this issue now so that any future problems in the sector can be forestalled. The president highlighted that there are numerous new areas to which regulators need to give serious consideration. Regulators have to think beyond the Basel Convention, which provides guidelines for the oversight of financial institutions, and examine other areas which can expose the institution and its depositors to unnecessary risk. The Head of State said that concentration of investments and excessive inter-party transactions, which resulted in the demise of the CL Financial Group recently, are areas to consider. “There are many similar things we have to discuss in the financial sector that go beyond the traditional scope of regulation,” Jagdeo said. He explained that this is the time to act as there is a clamour now on the parts of many people for governments to get involved. This was not the case previously. “If I had stood here in the past and suggested something of this nature, everyone in this country, particularly in the financial sector, would be shouting me down as if Government wants to control too much,” the Head of State noted. The efforts of the United States to regulate their financial sector, where the global financial crisis originated, were highlighted by the President as the steps needed to be taken. He urged the Caribbean to take heed of what is happening in the developed countries and ensure that the region is not lagging behind. The Head of State noted that the changes on the global financial architecture are not deep enough. However, he does expect those changes to be implemented, and expounded the need to lobby to make those changes come in a fashion that will be sympathetic to the small countries. “I hope that I can convince my colleagues that this is a serious enough matter to guide our regulators,” Jagdeo said. |
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