PanCaribbean Bank, the smallest of seven commercial banks by assets, has announced that it will again be cutting its Jamaican dollar prime lending rate by 50 basis points to 16.40 percent, with the change coming into effect on November 1.
The bank said yesterday that it was reducing the rate to aid fiscal consolidation and faster economic growth in the island’s economy.
In arriving at the decision, the bank said, its risk management committee took into consideration that the central bank recently adjusted its 30-day benchmark rate and that the domestic currency markets remained relatively stable.
It also took account that the foreign currency reserves were at adequate levels and that credit played a vital role in supporting economic activity and growth.
“The committee also noted that economic recovery, especially with the delay in finalising the revised measures required to comply with the International Monetary Fund agreement, requires a plan that aids both fiscal consolidation and faster growth to improve Jamaica’s prospects,” said the bank, adding that “lower rates support both of these objectives”.
The bank’s managing director, Philip Armstrong, said they took “note that the economy grew in the second quarter and believe that the banking sector must continue to assist the productive sectors as the engines that push Jamaica in the right direction.”
PanCaribbean Bank, which has an asset base of $16.5 billion, last cut its lending rate December 1, 2010. It is the commercial banking subsidiary of Pan Caribbean Financial Services Limited, a leading financial services group which provides investment banking products, along with wealth and asset management services.