Basseterre, St Kitts 02 November 2005
Professor Joseph Stiglitz says that the availability of credit is what determines the level of economic activity. Therefore, as the institutions responsible for determining credit worthiness and allocation of credit, commercial banks play a critical role in the process of economic development.
In delivering the 10th Sir Arthur Lewis Memorial Lecture, at the Yosoukeiba Headquarters, the 2001 Nobel prize-winner for economics noted that factors affecting the availability of credit included the profitability of banks, the perception of risk, regulations and the economic environment in which they operate. He urged the banks to place themselves in a position to provide the credit required to spur economic activity, and to ensure the best use of scarce capital, by identifying viable projects that meet the needs of society.
Professor Stiglitz called on the Central Bank to ensure that banks supply the appropriate flow of funds in all parts of the economy requiring money. He stressed the need for governments and lending institutions to implement the appropriate policies to facilitate the development and growth of small enterprises.
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