Governor: Deposits up 7.9% Jan-Sept

Total deposits in Barbados' banking system rose around 7.9% this year through September, compared to the same period last year, The Barbados Advocate quoted central bank governor Marion Williams as saying during her review of the country's economy for the first nine months of 2003. The increase in total deposits this year following on from a 9.5% year-on-year increase over the same period last year with the latest increase attributed to government divestment proceeds and rising individual deposits, which overshadowed weaker deposit growth for businesses, Williams said. According to the central bank governor, commercial bank credit to the private sector fell in comparison to last year as declines in the personal and distribution categories were offset by a 7.1% increase in loans and advances for tourism-related establishments. Excess liquidity in the banking industry ending 3Q03 at 22.5%, principally due to the local government's sale of shares in Barbados National Bank, which were then deposited in the financial system. As a result, the treasury bill rate felt to 0.94% at the end of September, compared to 1.51% at the beginning of the year. For the period January-September this year, government recorded an estimated fiscal deficit of US$156mn, approximately US$80.4mn less than for the corresponding period in the previous year. Total revenues expanded an estimated 6%, due primarily to greater corporate tax and VAT receipts.