By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
THE Government has been urged to pressurise the Canadian-owned banking institutions to offer Bahamians more shares in their local subsidiaries, calling it “mind boggling” that they were still almost exclusively owned by non-Bahamians.
“In Jamaica and other islands they made the Scotiabanks, the Royal Banks and the CIBCs divest a certain amount of their shares, create a local subsidiary as they have done here, but to sell those shares to local investors so that they can participate in such an important sector,” Mr D’Aguilar said.
“The local banking sector, if not now, certainly was the most profitable sector of the Bahamian economy. Out of the three major Canadian banks that have existed here over the years, it’s mind boggling that those three banks are almost still exclusively owned by non-Bahamians. I believe that the only reason they would allow for local participation is if pressure was applied to them by the Government.”
Mr D’Aguilar added: “What that would do firstly is open up their books to see how they were doing, and secondly, it would allow some of the profit presently being sent back to Canada to remain here and be invested in our local economy.”
Mr D’Aguilar recalled a conversation with former Prime Minister Hubert Ingraham on the issue during which it was suggested that such a move would put too much of a drain on the country’s foreign reserves.
“I’m sure you can devise ways for them to take it out over time rather than take it out all at once,” said Mr D’Aguilar.
Comments
banker 10 years, 2 months ago
When will Mr D’Aguilar learn that we do not have an open economy? Shares cannot be offered on BISX, because BISX is a thinly traded joke with almost no regulatory oversight. Look at the spectacular oversight failures on BISX.
Some of the statements that he makes are pure hubris. When will Mr D’Aguilar offer shares of SuperWash to the public so that Bahamians can share in the success that they support with their wash dollars?
It's the old golden rule Mr D’Aguilar -- he who has the gold, makes the rule. We have a Bahamian bank, but it is such a failure, that we are eyeing the plates of the more successful ones. We have to ask why the Bank of the Bahamas is not beating out the Canadian banks.
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