Chastanet says banks under pressure

The leader of the opposition United Workers Party (UWP), Allen Chastanet, has said that the banks are under pressure.

Chastanet told the Times that banks are having to hold back a certain percentage of their deposits to cover bad loans.

According to the UWP leader, that percentage was as high as twenty percent and dropped to seventeen percent.

He said he was uncertain of what the percentage is this year.

However Chastanet asserted that normally the percentage should be around five or six percent.

“It is becoming virtually impossible for a bank to make money when it has to have such high reserves and obviously the banks are continuing to see a high rate of default,” he explained.

He noted that as a result of the financial challenge, the vast majority of banks have recently been unable to pay dividends.

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