by Linda Straker
- At end of 2023, GDB loan portfolio was $99.4 million
- Non-performing loans stood at less than 3% but were showing signs of worsening
- GDB board delayed amending section(s) legislation that will require bank to expand its functions
Non-performing loans in the Grenada Development Bank (GDB) showed signs of worsening during 2023, and the Board of Directors delayed amending the section(s) of the bank’s legislation that will require the bank to expand its functions.
“As at December 31, 2023, the GDB held total assets amounting to $114.5 million with a total loan portfolio of $99.4 million and surplus of $ 1.2 million. Non-performing loans stood at less than 3% but were showing signs of worsening. On an overall basis, the Bank’s performance has been creditable and remains stable,” said the 2023 annual report of the Grenada Authority for the Regulations of Financial Institutions (GARFIN).
Scheduled to be tabled in the Lower House of Parliament on 18 December, the report said that as part of GARFIN’s approach to effectively regulate and supervise the non-bank financial sector in 2023, enhanced offsite monitoring of the bank’s operations was effected.
“Quarterly financial reports were submitted by the Bank on prescribed reporting forms to facilitate this monitoring,” said the report which pointed out that the Board of Directors halted the proposed amendment to the GDB Act. “In addition, the draft (Amendment) Bill which was previously completed by the Grenada Development Bank (GDB)so as to amend the GDB Act Cap 129, has been placed on hold by the Board of Directors while the bank pursues other priorities for reorganising.”
Under the sub-topic Legislative Review, the 2022 GARFIN annual report said that the GDB completed a draft (Amendment) Bill to amend the GDB Act Cap 129. “The Bill seeks to expand the functions of the Bank, to authorise the Bank to issue shares and accept certain types of deposits from customers as well as strengthen its governance. The Bill was submitted to Cabinet for its consideration.”
It’s not known if the Cabinet of Ministers had approved the amendment as reported in the 2022 report, but the 2023 report is clear that the delay in submitting the proposed amendment for parliamentary approval is a decision of the Board of Directors whose chairman is Andrea St Bernard.
According to the bank’s website, the other board members are Earl Brathwaite, Deputy Chairman; Directors Val Antoine, Ramona Otway, Patrick Simmons, Danika Cherman, Trevor St Bernard and Rolanda McQueen, with Royston Cumberbatch as Director/General Manager.
