In front of a mixed audience? of professionals and students at the Carl E. Peters Center of the Diocese of J?r?mie, economist and university professor? now? a typology of banks, distinguishing commercial banks, investment banks and development banks.
According to figures presented by economist Joseph Harold Pierre, the banking system has very little capacity to lend. Above all, the latter has assets of about 550 billion gourdes in March 2022, ?equivalent? 5.3 billion dollars at the rate of 104 gourdes to one dollar (the BRH reference rate in March 2022) dominated by three banks (Unibank with 35%, Sogebank with 26% and BNC with 20%). All other banks have a participation rate of less than 10%, added? economist Joseph Harold Pierre.
“Gross loans are 145 billion gourdes (or $1.4 billion in March) against 446 billion gourdes in deposits. The required reserve ratios of commercial banks for loans in gourdes and dollars are 40% and 53%, respectively,” later noted the economist Pierre, noting in passing that a commercial bank can lend only 60% of deposits received in gourde.
“BRH advertisement? Taking these measures in order to stabilize interest rates and devaluation of the stone and above all to protect against any possible failure of the bank, based on the seriousness of the situation. the situation of the country in general and the economy in particular”, he explained.
Joseph Harold Pierre says he regrets that in the financial system everything is done? through friendships or family ties. “According to a 2020 World Bank study, 87% of companies located in Port-au-Prince do not have access to credit or do not receive the necessary amount,” he said. According to him, these data clearly show the need? to diversify and deepen the market? The Haitian financial institution through the creation of a development bank to support sectors that promote growth and support for ? any embryonic investment bank.
Economist Pierre remember? what funding? through investment banks is generally done ? long term and? a lower interest rate. Regarding development banks, Mr. Pierre has advanced? that these are created by governments with a specific mandate to develop and promote key and strategic sectors for the socio-economic development of a country.
“The advantage of development banks is that their main objective is not profit, but growth and stability? ?economic”, it is shown? the economist emphasizing that development banks give loans at very low and long-term rates. Their success, he specified, requires a solid institutional culture, because they are often deficient and do not achieve the expected results.
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“Is there company? a relatively new investment promotion company that can be considered an investment bank and three development finance companies. There are 57 credit unions, which answer the most questions? a credit union logic that other financial institutions”, qualified? also the economist Joseph Harold Pierre.
According to economist Pierre, investment banks help businesses raise capital in the financial markets. If a company wants to go public or sell debt? investors, she often calls it? an investment bank, he noted. This type of bank can also advise companies in matters of mergers and acquisitions, he mentioned. the economist Pierre.
Economist Joseph Harold Pierre has not been absent? the possibility of submitting the pending threat to Haiti so that the country appears on the Financial Action Task Force (FATF) blacklist, a classification which would result in the elimination of all financial transactions with the country.
