T&T Banking: Allowing foreign banks a good idea?

[fensic]

I was just hearing someplace that the government expand the banking industry and allow ah foreign bank to enter. The goal is tuh spur competition which according tuh the pure economic model, will lower costs and increase service.

What allyuh think? Good idea? Or will foreign banks wid their superior technology, years of experience and know-how, crush the local banks? From what I understand is only one foreign bank that has been allowed into the local market.

Any other considerations or issues?

[Cherry ®]

err wasn't scotia and royal banks 'foreign banks'

[fensic]

err wasn't scotia and royal banks 'foreign banks'


Scotia and Royal Bank are 'foreign banks' yes but they have local subsidaries and ting right and all their operations goverend by local banking regulations. My understanding is that this latest move allows into the local market a bank that does not (at this point) have any local connection and when it comes in, if it not in already, it will be going head-to-head toe-to-toe, belly-to-belly with the local banks. This may all be more about a change in regulations and laws than anything else and I would expect the Scotias and Royal Banks of T&T will simply get more technological support from their foreign based headquarters.

One change I would expect is if yuh take a cashier's cheque to the bank and it is drawn on a US bank they eh go be doing that dotishness of telling yuh tuh come back in ah week tuh get yuh money as it have tuh clear first before yuh could get funds when in the US a cashier's cheque is as liquid as cash. (Assuming is an American bank they letting in of course).

I go have tuh find more information and read up about how this move different and what the change means under the covers to local banking rules.

[Hawke]

err wasn't scotia and royal banks 'foreign banks'


Scotia and Royal Bank are 'foreign banks' yes but they have local subsidaries and ting right and all their operations goverend by local banking regulations. My understanding is that this latest move allows into the local market a bank that does not (at this point) have any local connection and when it comes in, if it not in already, it will be going head-to-head toe-to-toe, belly-to-belly with the local banks. This may all be more about a change in regulations and laws than anything else and I would expect the Scotias and Royal Banks of T&T will simply get more technological support from their foreign based headquarters.

One change I would expect is if yuh take a cashier's cheque to the bank and it is drawn on a US bank they eh go be doing that dotishness of telling yuh tuh come back in ah week tuh get yuh money as it have tuh clear first before yuh could get funds when in the US a cashier's cheque is as liquid as cash. (Assuming is an American bank they letting in of course).

I go have tuh find more information and read up about how this move different and what the change means under the covers to local banking rules.


Coming from the banking industry in Trini... I think that the same concept would still apply when it comes to clearing a foreign draft.

Yes! A bank can cash a local manager's cheque easily, by just a signature or two from a superior, but due to many fraudulent transactions occuring in the system, many banks are timid in venturing off and clearing these cheques nonetheless, as many supervisors have lossed their jobs for being careless in the past.

The liens held when a foreign draft is presented at a bank is a much safer method, as it(the cheque) goes through many scrutiny, before all liens are released. However, if these banks feel it is much safer to go without taking these precautions, then by all means go ahead!

They just have to remember, that most of the fraud that occurs at a bank is done via foreign exchange

[greall]

I was just hearing someplace that the government expand the banking industry and allow ah foreign bank to enter. The goal is tuh spur competition which according tuh the pure economic model, will lower costs and increase service.

What allyuh think? Good idea? Or will foreign banks wid their superior technology, years of experience and know-how, crush the local banks? From what I understand is only one foreign bank that has been allowed into the local market.

Any other considerations or issues?


Competition in the local banking sector should be good for the customer as lower prices and a greater variety of services will now become available.

I can assume that this is all in the thrust for this country to become the financial services sector of the English-speaking Caribbean.Banks here no longer do just banking as you can even purchase or get advice on purchasing an insurance policy or any other financial services products at some banks.

There must be however the necessary changes to the present legislation governing the local banking sector before the entrants of the multi-nationals to safeguard transactions and to ensure that the integrity of the the local sectors is more than mediocre.

[Redman]

Bank of Baroda has gotten a license for commercial banking.
They would prolly come in later this year.

FCIB (cayman bank) is on th everge of buying out RBTT.

Clicos stand still agreement with Republic expires this year. CL might look for a buyer and that would have to be a foreign entity-CL would want hard currency for th etransaction.

Intercommercial is a Indian bank-as small as they are theyre still here.

Citi has been here since the nationalisation - only 2 branches and they do mostly corporate and investment banking.

Foreign banks are here but I hope more come and teach RBTT RBL and Scotia something about service and how to transact biz.

We will all benefit.

Later

[CuChulainn]

Foreign banks do give a real deal when it comes to competition. It can ensure lower bank charges, and beter rates for loans. As with most businesses, if one does something others will follow. I don;t know if you notice world trends, but banks rarely close... they all still make huge profits.

I don't like multi national companys who squeeze local business (Tescos, Walmart, Ikea etc), but with banking, I do think its a good thing. It worked very well here and gave real choice, and real savings to everyone

[greall]

Bank of Baroda has gotten a license for commercial banking.
They would prolly come in later this year.

FCIB (cayman bank) is on th everge of buying out RBTT.

Clicos stand still agreement with Republic expires this year. CL might look for a buyer and that would have to be a foreign entity-CL would want hard currency for th etransaction.

Intercommercial is a Indian bank-as small as they are theyre still here.

Citi has been here since the nationalisation - only 2 branches and they do mostly corporate and investment banking.

Foreign banks are here but I hope more come and teach RBTT RBL and Scotia something about service and how to transact biz.

We will all benefit.

Later


Phones resumed in Point... lol

An increased foreign bank presence is a good thing for TT we're probably already a major financial centre in the English-speaking Caribbean as locals will have access to the same services which they pay for with an arm and a leg now but at lower rates.

One should not expect the new banks to focus on retail banking activities (personal loans and deposits) as the emphasis is now on merchant banking and other projects requiring large amounts of financing such as roadway construction.

Greg

[Hawke]

Port-of-Spain, Sep 8 (IANS) Bank of Baroda, the fifth largest bank in India, is all set to open shop in four countries, including Trinidad and Tobago.

Kishore Kharat, managing director of Bank of Baroda, said in a press conference here that his bank received its provisional licence from the Central Bank of Trinidad and Tobago last February, and is expecting its final licence by the end of this month.
http://www.freshnews.in/bank-of-baroda-to-open-branch-in-trinidad-and-tobago-15126

Check this... I see it is really true