The Tribune

By NATARIO McKenzie

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Government needs to move with “some degree of haste” to provide additional funding for the Bahamas Development Bank (BDB), its former chairman saying its role in helping small businesses lacked clarity.

“I think there has been a considerable lack of clarity over what the Government intends to do to ensure that the bank does, in fact, play a significant role in expanding the funding of small businesses. There is nothing I have seen that says they have a clear road map,” said Darron Cash.

He added that the BDB plays an important role in maximising Bahamian ownership and providing the opportunity for Bahamians to become entrepreneurs.

Mr Cash said: “There is an important role for the Development Bank to play in maximising Bahamian ownership of the economy and providing the funding mechanism for Bahamians to open businesses. What the Christie government needs to do is move with some degree of haste in providing additional funding for the Development Bank.

“The bank needs scale because the bank’s risk profile is such that it is a lot more risk-seeking than the commercial banks. It is inherently more vulnerable to downturns in the economy because the bank’s clients are more exposed in the event of a downturn in the economy.

“In order for that to be balanced, the bank has to have a broader scope of lending. I continue to be satisfied that the team of leaders we left in place have the wherewithal to implement a meaningful range of activities to turn the organisation around and keep it in the right direction, but it does require funding from the Government for them to be effective,” Mr Cash added.

“There needs to be a commitment to support networks where clients of the bank can, through this new small business agency the Government proposes to put in place, be assisted through the provision of technical, administrative and other kinds of support.

“That is an important element to help small business persons who, in addition to financing, need technical guidance to ensure that in the event of a downturn in the economy or changes in their business model, [they have the necessary support].

“The way forward is the Government has to provide the funding and put the support infrastructure in place to at least provide an additional means by which clients of the Development Bank can ensure sustainable businesses.”