THE EDITOR, Sir:
It is apparent that Jamaica's banking sector is not capable of a reasonable conscience. Fuelled by high fees and uncompromising interest rates, these entities have generated super profits, much to the opportunity cost of national development, of course, among other factors.
I say this in light of two sound economic principles: a) When more money is at the disposal of consumers, meaning the general population, such funds are used to increase consumption, that is, to drive demand and b) Where said demand is increased, supply will also tend to increase to restore equilibrium towards the point where demand equals supply.
Where one sector of society abstracts from and hoards such money, it means that 'a' will not happen, and, therefore, neither can 'b'.
The bankers are all economists; they know this. Stability and later growth in an eco-nomy are fuelled by a move to increase supply. It is the production and manufacturing side of the economy and its tentacles also stretch into labour and employment.
Have we ever considered how many small businesses could have opened or remained open, and how many persons could have been employed or kept employment if some of these super profits, in excess of 10 billion at times had been at the disposal of the consumer? Have we had a comprehensive and independent comparison of the fees of Jamaican banks to those of our major trading partners?
I join with Greg Christie in calling for regulations in the banking sector to be codified in law.