Saturday, Dec 15, 2018

Less government bonds

Less government bonds
22 Nov
2018

As of the end of this month, local commercial banks will be required to hold less government paper as securities.

The Central Bank of Barbados has announced that it has reduced the securities reserve ratio for commercial banks from 20 per cent to 17.5 per cent, effective November 29th, 2018.

Central Bank Governor Cleviston Haynes announced the change in his remarks at the opening of a half-day workshop, "Debt Exchange - Risks and Opportunities: Leveraging the Jamaican Experience".

Mr. Haynes reminded that the previous requirement of 20 per cent, which went into effect on January 1st, 2018, was intended to be a temporary measure until government could strengthen its public finances.

He added that the reduction at month end "reflects the bank's commitment to reduce this ratio, as government's fiscal situation improves" and he anticipated that there would be further reductions in the coming months.