Banks contribute to economic growth

At the ribbon cutting ceremony for the opening of CIBC FirstCaribbean International Bank’s Chaguanas branch last Wednesday, the minister said, “CIBC FirstCaribbean International Bank has been operating and serving TT for 12 years and its expansion is noteworthy, as it underscores the viability of Trinidad and Tobago’s financial sector in the face of economic challenges.” She noted that, “In the local context, banks continue their role in contributing to our overall economic growth.” Together with insurance and real estate, financial services form the largest part of the services sector and the second largest contributor to GDP, approximately 17 per cent or $16 billion.

Gopee-Scoon said that not only has the banking sector been a major contributor to GDP, but its growth has outpaced the country’s economic expansion. “So as GDP contracted by 1.2 per cent in 2015, the financial sector grew by 1.9 per cent. These figures are a testament to the robustness of the local banking sector which can be attributed to progressive management systems and overall competitive business strategies.” Minister Gopee-Scoon urged the large commercial banks not to overlook the returns by individual Micro and Small and Medium sized enterprises (MSMEs). She said a small loan to a small firm provides jobs for a small number of people; however, the multiplier effect is not to be underestimated.

Speaking on the main reforms being led by the Ministry of Trade and Industry, the minister indicated that the likely implementation of a Secured Transaction and Collateral Registry System, will allow businesses to use their moveable property (intellectual property, accounts receivables, machinery and equipment) as collateral.

Gary Brown, Chief Executive Officer of CIBC FirstCaribbean International Bank, stated that the new branch was a significant achievement for the company as it strives to remain relevant and responsive to the banking needs of the country. “This banking Center is an example of how we are investing in our business and how we will continue to invest in Trinidad’s economy and the Caribbean Region,” he said. The ceremony included a tour of the new state of the art facility.