Barbadians are still depositing millions of dollars into accounts at commercial banks and other financial institutions despite being paid little to no interest on their savings.
That is based on new data from the Central Bank, which also revealed that while new loans to households have picked up, and more individuals are using their credit cards, most people are shying away from borrowing.
At the end of last year, total deposits at commercial banks, deposit-taking finance and trust companies and credit unions reached $13.6 billion, but three months later at the end of March they had surged by $500 million.
The majority of this, $311.3 million, was in local currency.
Central Bank Governor Cleviston Haynes explained that domestic currency deposits “grew by 2.4 per cent due to Government spending and heightened foreign exchange inflows during the quarter”. (SC)
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