TONY BEST: Region facing banking crisis
HOW DO YOU pay your daughter’s tuition at the University of Central Florida or for your son’s surgery at New York University Medical Centre in Manhattan?
After all, your money is in a bank in Speightstown that doesn’t have a branch in the United States so you can’t simply write a personal cheque and send it off to a child. Answer: Your bank uses its correspondent banking partner in America to pay the bill in US currency.
The system has become so routine that up until now few Bajans gave it a second thought. But with global banks cutting their corresponding banking relationships, with some of the region’s banks, there is a rising concern about the possibility of Barbados, Trinidad and Tobago and their neighbours being cut off from the worldwide financial system. Should that happen, economic chaos could occur. Read more
Source: Nation News (Barbados)