Canadian Banks in the Caribbean
Atrocious Behaviour
At the expense of we the Caribbean people, their clients, and small businesses throughout the region, CIBC, Canada’s fifth largest banking institution, is using deplorable tactics to reduce losses and/or build profits. With regional losses of some US$21.8 million for fiscal year 2013, and US$199 million for the six months ending April 30, 2014, in the Caribbean, one would presume that the bank would want to work closer with their long time good clients here. Instead, CIBC is kicking us when we are down by making unreasonable demands during this economical slow period. We intend to bring this atrocious behaviour to light, and we implore media to get involved.
In 2006, CIBC bought the 44 percent Barclays Bank share of their combined First Caribbean International Bank (FCIB) venture. The capital cost was US$988.7 million. Management must have thought this was an earnings accretive acquisition. Now, however, CIBC is apparently trying to get a return of capital, not simply a return on capital, from their recently impoverished clients in the seventeen countries they serve in the Caribbean.
With poor service that many of us believe to be abusive, and the ridiculous demands for insurance, appraisals and securities, the bank is making it virtually impossible for many business clients here to stay in business during tough times. CIBC inflates the interest rate based on what they perceive to be their risk factor. In one documented instance, the cibc/fcib is holding a debenture over assets and a personal guarantee that is in excess of US$5.0 million, on a loan note balance of just US$875,000. Where is the risk involved? Moreover, North American and European clients throughout the Caribbean seem to get a much better interest rate than those of us, black or white, who have been born and raised here by families that have settled here for generations.
When the US housing market collapsed in 2007 creating the beginning of the US recession, Canadian Banks immediately reduced the prime lending rate in Canada to 1.5%, being at that time 1.0% over the Canadian Central Bank rate of 0.5%. Here in the Caribbean, however, nothing changed. CIBC continued to charge its best clients a usurious rate of between 7.5% and 13.0%. Why?
The Government of Canada has given all Canadian Banks operating in the Caribbean a basically tax-free status on income from this region, so their shareholders love the huge profits from their Caribbean operations over these past many years.

Great Talk Mr. Gape. ALL true Lets move forward

Openness and honesty at ALL levels is all we ask for.

Cartwright is absolutely correct. The FNM must hold the Government accountable and continuously hold their feet to the fire like Ingraham did in opposition. This unchecked stupidity is killing the country. Now, not later, we need to fix this uncontested dilemma that the country faces.

Balance is needed. Resort tourism is what we know. What about commercial trade tourism? At least on Grand Bahama we have industries, manufacturing etc. We just need more. Retirement communities and the second home market also stimulates the economy and allows Bahamians to invest in our own environment. Now if be could only entice some of the 30 thousand well educated Bahamians living abroad to come home ????

Many intelligent responses to the statement made by past DPM Brent Symonette and a few simply stupid remarks. I am 63 years old and I don't even remember the UPB, however in all these years I have never heard one person in this country, black or white, say anything bad about Roland Symonette. Remember when Pindling made ZNS play the movie Roots on election night, twice. The PLP have always been raciest when it was convenient or to get votes from the less fortunate in education. For three generations we watch the sensationalisms on American TV with much violence and racism, What do you expect of young minds on the border of poverty. Many of the writers here are correct, their is no place for this BS here in the Bahamas. I and many citizens of this country agree that Brent would make a great PM. The FNM salt and pepper leadership worked perfectly and the world looked upon us as a country united. How do you think the world sees us now ????

stanley cartwright, While I can't agree with ALL you write I, as a founding member of the FNM thank you for writing with such passion. One thing I have learned these past few months is that we have a great many intelligent and concerned Bahamians that actually understand what our future should be and can be. Politicians are who they are, but I think we need to look at each as to the real reason they enter politics. Keep up the good work.
JBB

“The role of the media in The Bahamas must be to act as the watchdog of society, allowing the free flow of ideas, and assist people in making informed decisions. A free press protects its citizens against abuses by its government and its agencies, strengthen democracy by ensuring that the rule of law is further institutionalized by providing balanced reporting that is objective, fair and done in a timely manner and equal access to all. In the interest of transparency and openness the PLP calls on the media to discharge its sacred responsibility to people of the Commonwealth of the Bahamas without bias.”
AS a penance, all politicians and want to be politicians need read the above 10 times per day until the elections. JBB

Pierre, Sorry I didn't read this well written article earlier. Nice to see you are still involved. The whole country knows Shane is and has always been useless. Look forward to hearing more from you.

Cornell, it is nice to see intelligent Bahamians standing by their convictions. Keep writing