The recent banking crisis in Paraguay, where millions of customers reportedly faced restrictions on accessing their money, should serve as a serious warning to Trinidad and Tobago.
Imagine waking up tomorrow morning and discovering that you cannot withdraw your savings, access your pension, use your debit card or transfer money from your bank account.
What would happen in Trinidad and Tobago? The consequences could be disastrous. Panic, frustration and public disorder could quickly develop. Citizens cannot purchase groceries, pay rent, buy medication or meet their daily obligations without access to their money. The possibility of chaos in our streets cannot be dismissed.
I am therefore making a direct demand of the Governor of the Central Bank of Trinidad and Tobago: What contingency plans are in place to protect depositors if a major commercial bank encounters serious financial difficulties?
The population deserves clear answers:
- How financially prepared are our commercial banks to withstand a major financial crisis?
- What emergency arrangements exist to ensure customers retain access to their money?
- How quickly can depositors recover their funds if a bank becomes insolvent?
- Is the present TT$200,000 deposit insurance protection adequate for citizens who have spent a lifetime accumulating savings?
- What arrangements exist to protect deposits exceeding the insurance limit and foreign currency deposits?
I am particularly concerned about pensioners and senior citizens whose savings represent their financial security and retirement lifeline.
Governor, I am asking you to publicly reassure the population that a comprehensive contingency plan exists, that it has been tested, and that the necessary arrangements are in place to maintain confidence in our banking system.
Do not wait until thousands of citizens are standing outside banks and ATMs demanding access to their own money before addressing this matter.
The Central Bank must be proactive, not reactive. Financial stability is national security, and protecting depositors is a responsibility that cannot be taken lightly.
We cannot assume that because it happened in Paraguay, it cannot happen here.
OUR MONEY IS OUR MONEY. CITIZENS MUST NEVER BE LEFT WONDERING WHETHER THEY CAN ACCESS THEIR OWN SAVINGS.
The time to prepare is NOW, not after a banking crisis.
Gordon Laughlin,
Westmoorings
