It was influenced by the fact that the lenders’ compensation was based on the volume of credit he originated and not on the quality of the credit. It would seem that general codes of behaviour rather than explicit rules are important here since one cannot anticipate every situation, nor can we devise a rule for every possible eventuality.
In the Caribbean and in Barbados in particular, generally speaking our commercial banks and finance companies have been quite compliant. Banks and finance companies in Barbados have tended to be well regulated and have observed the guidelines issued by the Central Bank.