Parliament is expected to meet in an emergency sitting on Tuesday and acting Prime Minister, Dr. John Colin Mc Intyre, said a new Eastern Caribbean Asset Management Corporation Act is expected to be established.
A Bill for an Act to provide for the regulation of the banking sector was brought before Parliament for debate and approval earlier this year.
The Bill also sought for the establishment of a single banking space and for incidental and related matters and the repeal of the Banking Act, No. 16 of 2005 and was unanimously approved.
Mc Intyre said in an interview with state-owned DBS Radio that the Act is necessary in dealing with financial institutions that are facing difficulties.
“You would have known that sometime ago we passed the new banking act and of course there are a number of banks in the region that experienced some difficulties,” he said. “These banks cannot remain in that sort of manner where they are not performing properly. So this body would give power to go in there manage the assets, manage the liabilities with a hope of cleaning up the banks and putting them back into circulation in a positive manner.”
Dr. Mc Intyre pointed out that these non-performing financial institutions can have an impact on the Eastern Caribbean Central Bank (ECCB).
“Because if you have these banks that are non-performing and of course you allow them to deteriorate because of non-performing loans, bad debt and a lot of liabilities then you cannot allow them to continue that way because they in turn have an effect on the ECCB,” Dr. Mc Intyre said.
The Acting Prime Minister said the establishment of the body will be taking care of the management of assets and liabilities of banks.
“Now before the [Eastern Caribbean] Central Bank can go into a bank it has to be governed by law and the Banking Act and this is one aspect of the Banking Act which we need to set up based on asset Management Company which we have of the Eastern Caribbean Asset Management Corporation.”
He continued, “So basically what we are going to do in Dominica and the rest of the [Eastern Caribbean] Currency Union (ECCU), is going to pass the bill into an act to give power to the company to manage the liabilities and assets of these banks that are not performing.”
where can i get to read the entire banking act?
Great Move
I wonder if those ministers know what they are debating.
Is it possible that the P.M. has committed us to sell the Cabrits and Fort Shirley and maybe also Dowasco in order to raise cash?
vetting is needed before we’proceed with this act. We talk of democracy and transparency .
I do not understand why there is such a rush to table this measure, when the prime sponsor, the minister of finance is not available to present it, and make clarifications. There seems to be a sense of urgency, maybe emergency or even desperation surrounding this. It is like, Dominica’s house is on fire, throw out the couch, matress, tv, just do something quick!
**************LET THE STRONG SURVIVE**************
“Mc Intyre said in an interview with state-owned DBS Radio that the Act is necessary in dealing with financial institutions that are facing difficulties”.
“The Acting Prime Minister said the establishment of the body will be taking care of the management of assets and liabilities of banks”.
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This report is not clear enough it seems to be a bit sketchy!!
I would like to read a complete report about this new act!!
I’m I understanding this correctly?
If these banks are not performing then let them face the economic consequences!!
Why is government getting themselves involve in this!!
I thought that’s what the courts were there for.
Do we really think any government can do a better job?
Let the strong survive!!!
As for the weak banks, they will either “buck-up” or perish!!
-Thanks
I suspect the govt. is hard up for cash, as are many other Caribbean countries and we are allowing the banks to sell off non-performing assets at a heavy discount to lighten their balance sheets. I also suspect that if we did not do that we would be technically bankrupt and unable to raise money to service our debt and pay such things as salaries. Without generating income from economic activities though this will only give us a brief respite before we’ll have to sell the rest of the family silver. These are desperate times. Will we be able to maintain our E.C.$. or have to succumb to the greenback after all?
So whats the emergency here? Why can’t this wait a couple of days to be properly read and digested AND for the Prime Minister and Minister of FINANCE to return home to participate?
A financial act, an emergency meeting of parliament, but Minister of Finance not present? Is he worried of questions being posed to him in parliament? I mean surely as a the Minister of Finance he knew this legislation was needed, surely he knew before this oh-so-important trip to Asia was booked; could he not have postponed the session for a day or two so that he could return from Vietnam to lead his flock?
Dominicans…I fear you will go down as the most foolish in the region. Soon folks in the other islands will be saying…”Boy you take me for a Dominican or what?” But that is IF there is a Dominica to remember…at the look of things everyone is trying to flee…including the Prime Minister himself!
Great Move!!!!!!!!!
What is the rush all about? Is Dr. Mc Intyre the minister of finance? Better yet, is Mc Intyre or any member of the current DLP administration an economist? We know the minister for finance himself is not an economist but as the minister responsible, why not wait until he returns to have this emergency meeting since it has to do with the banking act?
Boy this thing is so fishy like every other matter that has to do with Dominica. This country is in a mess from top to bottom and I do hope come tomorrow, these parliamentarian will forget about the banking act thingy and instead, raise a no confidence vote in Skerrit and kick the hell out of him out! All sons and daughters should gather outside of cabinet with their peaceful placards, demanding Skerrit not only step aside but resign immediately!
This sounds rather interesting. Now there is a lot of good that can come from such an act with the right plans and people in place. There should be experts available that can look at what is going on within these institutions, analyze data looking at banking practices adding the human factor. We need experts and not politician giving their input on a situation that they may not understand but feel they do because they were elected into office winning the popularity vote. I hope this does not turn into a power struggle and people in high positions abusing their power and will only manufacturing good results. This is in its infancy so let us start on a positive note and hope this benefits the country, the eastern Caribbean and its people.