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Banks
Grenada has a range of well-established banking and financial services within its relatively small economy. However, the island suffered under the global financial crisis, with the collapse of various companies offering financial services, from which the government is working hard to recover. The banking sector consists of the Grenada Development Bank (state-owned) and five commercial banks, four of which are local offices of international commercial banks (2011). These comprise the First Caribbean International Bank (Barbados) Limited, Grenada Co-operative Bank Limited, RBTT Bank Grenada Limited, Bank of Nova Scotia Limited, alongside the native Republic Bank (Grenada). In addition to these there are 12 credit unions. Typical products and services are savings and deposits, loans and advances, foreign exchanges, credit card services, ATM services, and commercial services. The financial sector also includes 22 offshore banks, 14 licensed trust companies, six offshore insurance companies and around 4000 international business companies (2011).
Regulation of Financial Services
As Grenada is a member of the Eastern Caribbean Currency Union (ECCU), the jurisdiction for the regulation and supervision of commercial banks lies with the Eastern Caribbean Central Bank (ECCB). Regulatory jurisdiction over financial institutions is partly that of the ECCB and partly of the national authorities. The ECCB acts as regulator of all banks licensed to conduct business within the ECCU, which includes both domestic and foreign owned banks. In turn, the ECCB is governed by a Monetary Council consisting of the Ministers of Finance from each of the participating governments. The Grenada Authority for the Regulation of International Financial Institutions (GARFIN), established as part of the regeneration after the disruption of Hurricanes Ivan and Emily in 2004 and 2005 respectively, is responsible for the regulation and supervision of all non-bank financial institutions. It came into operation as a statutory body with the mandate to regulate offshore banks, insurance companies, credit unions and all other non-bank money transfer institutions. In 2012 the Prime Minister called for greater regulation of the financial industry through an amendment to the Insurance Amendment Bill designed to empower GARFIN to provide greater oversight of the financial services sector and protect against fraudulent activity. Additionally, offshore banks are regulated by the Grenada International Financial Services Authority (GIFSA).
Development of Financial Services
The World Bank Ease of Doing Business Index ranked Grenada 98th in the world (out of 183 countries) for getting credit, a solid regional position placing it in an equivalent situation to St Lucia, Antigua and Barbuda, Jamaica and Belize. In relation to protecting investors it ranked highly at 29th overall in the world, with only Trinidad and Tobago rating higher amongst the Caribbean islands.
| Banking and Financial Services organisations in Grenada | |
|---|---|
| Grenada Co-operative Bank Limited |
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| Grenada Development Bank |
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| RBTT Bank Grenada Limited |
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| Republic Bank (Grenada) Ltd |
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| The Royal Grenada Police Force |
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