Prime Minister and Finance Minister Gaston Browne has criticised Antigua and Barbuda’s commercial banks for depending heavily on fees, delaying loan decisions and investing local savings overseas instead of supporting domestic growth.

Browne, a former banker, said an International Monetary Fund assessment found that banks remained highly liquid but conservative, with business lending growing by only about 3 per cent while overall domestic credit remained stagnant.

“Our banks, to some extent, are failing us,” he said, describing their approach as “conservative, lazy banking.”

He complained that customers sometimes wait three months for an appointment and another three months for financing, even after receiving pre-approval.

Browne urged banks to provide more mortgages and proposed EC$50 million to EC$100 million in housing or savings bonds to finance government home construction. He said banks could earn by financing the projects and later providing mortgages to buyers.

The prime minister also criticised banks for investing deposits in low-yield US securities instead of lending locally at higher rates.

“You all need to step up,” Browne said. “Use your creativity. Do something.”

He warned that conservative institutions could lose market share as stronger competitors enter the banking sector.

This article was originally published by Antigua News Room. Read the original article here: Antigua and Barbuda’s PM Accuses Local Banks Of Failing Borrowers with Conservative Lending.