THE BANKING SECTOR IN TRINIDAD AND TOBAGO
BANKING, INVESTMENT & FINANCIAL SERVICES By the Bankers Association of Trinidad & Tobago
As an indispensable facilitator of commerce, the local banking sector ranks at a sound 34 out of 137 countries surveyed in the World Economic Forum’s 2017-2018 Global Competitiveness Report. Recently, the International Monetary Fund (IMF), attested to the strength of the sector, indicating that it is well-capitalised with healthy balance sheets which enabled it to be profitable notwithstanding the fall in energy prices since 2014 and the associated economic shocks.
The sector’s capital adequacy ratio, in 2017, stood at a solid 21.0%, while Return on Assets was a sound 2.4% with Return on Equity at 18.5%. Commercial banks continue to be the leading source of credit for firms and households as confirmed by the Central Bank of Trinidad and Tobago which reported a 4.6% rise in private sector credit
granted by the consolidated financial system in 2017 of which 91.5% came from commercial banks.
STAYING
AHEAD OF THE GAME
ABM/CARD FRAUD With fraudsters becoming more sophisticated, the commercial banks have had to enhance their fraud-fighting capabilities as they related to ATM and credit card scams as well as to a constant barrage of cybersecurity attacks. In addressing this issue collectively, The Bankers Association of Trinidad and Tobago (BATT) has adopted a multi-pronged approach which includes training events on fraud prevention strategies for organisations, and information to customers on cyber crime, credit card and ATM fraud. At an individual level, the banks have taken concrete steps to improve its cyber vigilance and IT security infrastructure. MONEY LAUNDERING
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A significant concern for the sector is the effectiveness of Trinidad and Tobago’s anti-money laundering framework. Any deficiencies in the country’s legislative framework for anti-money laundering and counter- terrorism financing expose the financial sector to international censure, including significant penalties and the loss of international banking services for our customers. To mitigate vulnerability to money laundering, commercial banks continue to invest heavily in their compliance departments and IT infrastructure while working closely with the local anti-fraud agencies.
