Bank of The Bahamas. A wholly unnecessary debacle: The Great Recession of 2008 and the subsequent years put great pressure on our domestic commercial banks (and others around the world). They all saw their bad debt increase substantially while sagging economic prospects and constrained domestic consumption meant that there were fewer loans to write. Put together, sharply rising provisions for bad debt and fewer new loans and mortgages translated respectively into the unholy combination of higher expenses and lower revenues for these institutions. And many of these banks responded with painful restructuring and consolidation that was in no way easy. We saw the headlines noting bank layoffs, management restructuring and outsource of functions to offshore centers. There was no shortage of public criticism for the tough but necessary decisions. While the privately owned domestic banks were prudently tightening their belts during these tough times, there was the Bank of The Bahamas blissfully sailing along doing as and what it pleased, paying no attention to its deteriorating balance sheet. Now, we the taxpayers are being asked to foot the bill without any true examination, explanation and accountability for what transpired - nor with any published game plan for reviving the essentially bankrupt institution. This is astoundingly bad governance. There is no cover, nor excuse for it. The government must come clean. Tell the whole story and make public the game plan to restore the bank to where it ought to be.
Posted on: Thu, 06 Nov 2014 12:32:47 +0000
Trending Topics
Recently Viewed Topics
© 2015