The sustainability of the indigenous banking sector in the Eastern Caribbean: Perspectives and expectations of key external stakeholders

Logie, Aaron

Abstract

Despite their significant contributions to the economic and social development of the Anglophone Caribbean, their vulnerabilities arising from the distinctive features which limit their ability to withstand financial and economic crises, the indigenous banks in the Eastern Caribbean have received very little attention from academics. This is in sharp contrast to the many studies on banking in larger and more developed economies. This thesis, therefore, aims to fill that gap, and contribute to knowledge and practice, by exploring the sustainability of the relatively small, locally owned, and controlled banks in the Eastern Caribbean, referred to as indigenous banks. This is done from the perspective of their key external stakeholders.

To achieve the aim and objectives, the study purposefully sets out to obtain rich qualitative data from a cross-section of individuals. To guide this approach, a qualitative methodology was adopted using two sample banks. This was supported by semi-structured interviews. The data collected were then analysed using thematic analysis to identify the key features of sustainability and what participants perceived as the critical areas that the banks must strengthen to ensure their long-term survival.

Studying the sustainability of indigenous banks through the views of key external stakeholders provided invaluable insights on ways to promote the long-term survival of these institutions. Two of the foremost recommendations from participants were enhancing the corporate governance practices at the banks and secondly, focusing more on meeting the needs of customers. Other important recommendations included leveraging more on the indigenous identity of the banks, implementing a strategy on consolidation that is acceptable to all stakeholders of the banks, having a proper foreclosure legislation and other supporting institutions such as a credit bureau, and having systems in place to mitigate external threats such as loss of correspondent banking relationships.

These recommendations provide an important perspective, which is by no means the only one, on assessing the long-term sustainability of a business organisation. The advantage is in the fact that the perspective is representative of the views of a broad cross section of stakeholders. These stakeholders include those that purchase the products and services of the banks, those that provide the deposits and capital that finance the operations, those that regulate the activities, and finally those that provide the environment through which the banks can build their brand.

Citation

Logie, A. The sustainability of the indigenous banking sector in the Eastern Caribbean: Perspectives and expectations of key external stakeholders. (Thesis). Edinburgh Napier University

• Thesis Type: Thesis
• Deposit Date: Mar 22, 2023
• Publicly Available Date: Mar 28, 2023
• DOI: https://doi.org/10.17869/enu.2022.3055293
• Award Date: Sep 27, 2022