The paper indicated that the average NPL ratio across the Caribbean is high at above five per cent of total loans, or slightly above regulated norms, while most other regions in the world are tracking lower.
It follows on from the global financial crisis a decade earlier, which triggered macroeconomic instability and business downturn, leading to unserviced debt.
The authors of the working paper Kimberly Beaton, Thomas Dowling, Dmitriy Kovtun, Franz Loyola, Alla Myrvoda, Joel Okwuokei, Inci Otker, and Jarkko Turunen argue that the creation of a regional asset management company, an AMC, would redound to the benefit of the region and free the banks from having to pursue defaulting borrowers.
"The small size of the Caribbean economies, as well as structural obstacles such as gaps in the information framework and cultural and social factors, prevent development of a well-functioning domestic market for distressed assets to facilitate the disposal of NPLs," they noted in the paper titled Problem Loans in the Caribbean: Determinants, Impact and Strategies for Resolution. more
'via Blog this' Crowe Horwath Jamaica (www.crowehorwath.com.jm) is one of the largest public accounting, consulting, and advisory firms in Jamaica . Crowe uses its deep industry expertise to provide audit services to public and private entities while also helping clients reach their goals with tax, advisory, risk and performance services. Crowe Horwath Jamaica serves clients worldwide as an independent member of Crowe Horwath International, one of the largest global accounting networks in the world. The network consists of more than 200 independent accounting and advisory services firms in more than 130 countries around the world.
No comments:
Post a Comment