While some reduction may have been a true gain in welfare to the community through more efficient risk transfer, carried too far, inadequate capital simply allows bank shareholders and depositors to earn excess rates of return at the expense of future taxpayers. So what?
I happen to believe that all this is true and that when the chips are down we will make the right decisions. However, we have a knack for putting off the difficult decisions for too long. Let’s hope we don’t, this time around. Let me again congratulate Ansa Merchant Bank for showing continued faith in the economy of Trinidad and Tobago.