By J. K. Roberts ( Sound Public Policies Advocate ): For achieving objectivity, meaning and appreciation concerning this Vexing Headline, four pertinent considerations must be embraced. Firstly; there is no controversy and hostility that banks are in business for profits and have the responsibility to thrive.  Secondly; the substance to be derived about the Penny Bank is generally typical of all of the banks and financial institutions in Grenada, where it may be proven that their local workers, customers and stakeholders are being exploited. Thirdly; the pronouncements about a year ago by the Barbadian Prime Minister about the egregious profits make by some persons at a time when others are sucking salt, indeed brings focus and reality on the ‘unrestrained’ unscrupulous and unpleasant conduct of certain banks here in Grenada. Ms. Mia Amor Mottley had expressed such sentiment in connection with moves by the Government to investigate the issue of bank fees which, as published in the Barbados Today e-paper, are said to be among factors driving the rising cost of goods there.  Fourthly; review the previously internet-circulated article, “Abusive Banks In Grenada : The Poor Is Powerless But Must Be Aware !“, which seeks for actions against the various forms and degrees of abuse experienced by the people across the commercial spectrum of professional services, construction contracts, public utilities, retail outlets, automotive dealers, insurance companies and the banking sector.

The Grenada Co-operative Bank Limited (Co-op. Bank) has been known to its early depositors of the 1930s through to the 1970s as The Penny Bank.  This idea also bears to the Bank been ‘recently’ branded for marketing, as “Grenada’s only indigenous bank”, especially to attract the Diaspora, the patriots and the grassroots.  In order to be globally compliant and competitive, Co-op. Bank evolves and adopts over the many years, and presently boasts of its Driven Mission thus : “With Grenadian pride, we improve the lives of our customers through the provision of high quality financial services while ensuring a fair return to our shareholders and contributing to the well-being of the citizens where we operate”.  The Bank may have also received several prestigious recognitions, including the “Inaugural ECCU Bank of the Year Award for Risk Management” in November 2019; ECCU stands for Eastern Caribbean Currency Union.  Fascinating is the news that as of 17 July 2023, Co-op. Bank will have complete acquisition and operation of the Grenada’s business-branch of CIBC First Caribbean International Bank Limited (“FirstCaribbean”), a member of the CIBC Group which is a leading Canadian-based global financial institution.  This new ownership ought to be held as a milestone feat for Co-op. Bank; but what does it bring for the people?

The Chairman’s Review of the “Summary Financial Statements for the six months ended March 31, 2023” of Co-op. Bank indicates that the Bank has continued to perform well, with a net profit of $10.1 million and with an increase in total assets to $1.74 billion.  This 2023 Half Year Financial Report which signifies the Bank’s prosperity and progression and projection, should not be taken passively but must also be contextualized within the ‘attitude and treatment’ of the Bank especially towards its small, powerless and naïve customers.  Whilst the point was made by Mr. Darryl Brathwaite that “This profit was achieved through increased revenue”, it should be ‘clear and sensible’ for the population that a considerable amount of such generated revenue is because of the contributions from the depositors and with the distresses inflicted by the unnotified, hidden, disproportionate and outrageous charges taken on savings and transactions by the Bank. In pursuit of revenues, do the Management and Directors of the Bank sympathize, regarding the scenario whereby meager savings of citizens such as those who are unable to make regular deposits, pensioners, and recipients of social allowances can be depleted to a negligible balance due to maintenance and security fees been applied by the Bank, and knowing fully that its interest rates on savings are very low and that inflation rate diminishes purchasing-value of the balance?

Many factors would favor Co-op. Bank “continued to perform well”.  Further to the application of various charges, over the past years it has been alluded that the Bank’s liquidity is great and indeed, credit must be given about the wide range of investments entered and of services offered by the Bank. However; was the “increased revenue” of Co-op. Bank also achieved with its “strategic initiatives” of cost-cutting measures in relating to the customers?  Do the Management and Directors of the Bank have any concern about the impact which measures such as the cessation of passbooks, the issuance of flimsy prints of information by the tellers, the refusal to send periodic statements on saving-accounts even when requested, and the often less than fifty percentage operational teller-windows for customers even on ‘peak or busy’ times but having the customers stand for hours before receiving service, on the productivity level, opportunity cost and mental state of the customers? It should not be missed that the “net profit” by Co-op. Bank was effected after the clearance of all of its expenses and liabilities such as Government’s taxations, political sponsorships, social contributions and other corporate commitments.

It is quite apparent that Co-op. Bank has lost its relevance and advantage for the ‘penny customers’ who are now shown disrespect and discrimination. It should be instructive to realize that for example, unless a customer has a Chequing Account then the Bank will not communicate a Transaction Statement to him or to her.  Has Co-op. Bank taken into consideration the demographics or the different categories or the socio-economic statuses of its customers, at least in terms of transactional capacities, patterns and requirements, with a view to responding to different situations accordingly? The objective and philosophy for the basis of the Bank have been eroded, as the ‘convenience and privilege’ afforded in the early period of existence is not enjoyed today by its ‘penny customers’. In this contemporary technological era, Penny Customers also incorporate those clientele who are not credit-card holders and those who do not have access to and / or inclination for electronic transactions, but they see it critical to have paper-records for monitoring their accounts.  Regrettably; it may be proven more chaotic, complex and costly now to open, to secure, or to modify an account at Co-op. Bank than at other banks in Grenada.

The banking climate in Grenada is not conducive for the average citizen, neither is it for expanding and transforming adequately the national economy; and the troubling perception is that there is no hope on the horizon that the Government is prepared to intervene for betterment on behalf of the people.  The future is grim when also realizing that the banking sector is becoming monopolized by a reducing number of bankers.  After having a choice from about six different commercial banks at one point in the past, there are three main banks now operating. Noteworthily; in 2019 the Republic Bank Financial Holdings Limited acquired the Bank of Nova Scotia, in 2021 ACB Caribbean Group acquired and branded RBTT Bank Grenada as ACB Grenada Bank, and this year 2023 Co-op. Bank acquires CIBC FirstCaribbean.  It is of interest to know if the charges, services and courtesies enjoyed by the ‘once’ ordinary customers of FirstCaribbean, such as the receipt of Savings Balance Statements, will be continued under Co-op. Bank. 

What are the lessons and challenges for the Grenadian-people? Most definitely; there is the need and the possibility for a real people’s indigenous commercial bank in Grenada to be undertaken by the working class. On the principles and pillars of social equity, the Grenada Trades Union Council, the Grenada Co-operative League Limited and the National Insurance Scheme should spur its constituents towards the establishment of a bank which will be much more sensitive, accommodating and rewarding.