Prime Minister Gaston Browne is calling on commercial banks in Antigua and Barbuda to take greater risks and put more of their money into domestic lending, arguing that the financial sector should play a larger role in driving economic development.
Speaking Saturday on the Browne and Browne Show, Browne said that while the country’s economy and fiscal position remain strong, he continues to have concerns about what he described as the conservative lending practices of banks.
“In terms of the banking sector, we’re still having a little issue there in terms of the conservative aspects of the banking sector and our lending of money,” Browne said.
He suggested that banks are placing too much emphasis on holding or investing funds overseas rather than financing businesses and other economic activity locally.
“Literally just banking monies overseas and depending on their returns on their securities,” Browne said.
The prime minister said financial institutions should assume a greater role in financing Antigua and Barbuda’s development.
“I still think that they have a more significant role to play in economic development,” he said.
Browne called on banks to become “less risk-averse” and serve as “a catalyst for that matter, for strong economic growth and development within the country.”
His comments came as he discussed the broader state of the economy and the government’s efforts to encourage entrepreneurship and local manufacturing.
Browne pointed to increased demand for financing through the government-backed Entrepreneurial Development Fund as evidence of growing interest in starting and expanding businesses.
“Every week we get applications for entrepreneurial funding,” Browne said. “So I’m very happy with the increase in entrepreneurship.”
He highlighted emerging local manufacturing operations, including a new three-ply toilet paper product being made in Antigua and Barbuda, plans for a larger toilet paper operation that intends to export, and a brewery being developed by Antigua Distillery.
“So in manufacturing, we’re seeing some improvements,” Browne said.
He also urged consumers to support locally manufactured goods as more products enter the market.
“As products are being produced locally, we must support our own,” Browne said. “We want to encourage you to buy local.”
Browne’s remarks suggest the government wants increased private-sector lending to complement public financing programmes and provide local entrepreneurs with greater access to capital as Antigua and Barbuda seeks to expand domestic business and manufacturing.
Antigua Newsroom
