Credit rating agency Standard and Poor's is warning that Jamaica's commercial banking sector faces growing risks due to the country's slow economic growth and low per capita income.
S&P says Jamaica's per capita GDP when divided among a population of roughly 2.7 million remains lower than most countries in Latin America and to the Caribbean.
The agency says this limits how much many Jamaicans can afford to borrow and that affects the ability of banks to grow their loan portfolios. It notes that most of the banks' $1.6 trillion in loans are tied to industries which are more sensitive to downturns in the economy.
S&P also highlights that private sector borrowing remains low at just 51 per cent of gross domestic product, signalling a small and less stable market for banking products.
The agency says stronger economic growth will be needed to support a more resilient and profitable banking sector.
comments powered by Disqus
_logo.png){kind=logo}
All feeds
