Predatory banks stifling businesses

THE EDITOR, Sir:

These modern slave masters, otherwise called banks, wittingly or unwittingly, are holding on to sometimes compounded interest rates averaging up to 15 per cent and higher, plus high fees.

Can you imagine the Bank of Jamaica policy interest rate as elaborated on Cliff Hughes' Nationwide on Thursday is two per cent? Even if they put on three per cent, along with their fees, banks would still make billions by having more business activities.

Banks in the civilised modern world rely less on interest rates to make a profit and more on reasonable fees. The Government should invite other banks from decent countries like Japan to invest here, as interest rates there are negligible. They understand how to kick-start an economy.

Many bright, honest, decent people out there are resorting to criminal means/criminals to borrow, earn or get money to start businesses as a means to an end. I would like to see some of the newer players in the banking industry like JN Bank, Sagicor, and First Global move swiftly to modernise, deepen and widen the participation in the wealth-creation processes for individuals, families, communities and ultimately rescue Jamaica's rural and urban class from poverty, corruption and crime.

I once needed a loan some years ago and walked everywhere until I went to one that had the slogan 'You are Safe with Us'. Without collateral, I boldly offered my integrity and willingness to repay at whatever cost and I was successful.

Banks should seek to be a real partner of businesses.

MICHAEL SPENCE

micspen2@Hotmail.com

Liguanea PO Box 630