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#410768 - 06/27/11 11:02 PM BCB British Caribbean Bank drops 25%  
Joined: Mar 2009
Posts: 273
Cayemen Offline
Cayemen  Offline
Shares in financial services provider BCB Holdings fell by almost a quarter on Monday after the group revealed that it swung into the red in the year ended 31 March.

Reported a net loss of $7.3m, compared with a net income of 25.9m the year before, primarily as a result from lower interest income and higher expenses.

Operating losses totalled $30.3m, down from a profit of $7.3m previously
. Loss per share fell to $0.07, from a profit of $0.27.


How save are Belize Banks in general, with many bad credits and so many businesses in receivership?

#410774 - 06/28/11 07:50 AM Re: BCB British Caribbean Bank drops 25% [Re: Cayemen]  
Joined: Mar 2001
Posts: 2,624
bywarren Offline
bywarren  Offline
You are using Belize Banks and safe in the same sentence? laugh
I don't plan on rolling over my 410k into Belize $ in a Belize bank. After all, Belize $ are only good for buying rice and beans or a joint. laugh

On a more serious note: when I was involved in banking, we became concerned if our loan porfolio got to 5% non-preforming loans. The last time I checked the Belize Bank's was in excess of 30%.

Last edited by bywarren; 06/28/11 07:55 AM.
#410780 - 06/28/11 08:29 AM Re: BCB British Caribbean Bank drops 25% [Re: Cayemen]  
Joined: Dec 2006
Posts: 12,009
elbert Offline
elbert  Offline
Pegged at two Belize dollars per US dollar (bz$2=$1), which gives the Belize dollar more stability than any of the other Central American currencies. The US dollar has been deteriorating in value for years. Some of the other Central American currencies have devalued at a much worse rate than the US dollar, whereas the Belize dollar has only done as badly as the US dollar.
A Belize dollar will buy exactly as much Beans and rice or joints as a US dollar and always has.

The Dive Shops Daily Blog
#410784 - 06/28/11 09:06 AM Re: BCB British Caribbean Bank drops 25% [Re: Cayemen]  
Joined: Oct 2003
Posts: 2,391
Katie Valk Offline
Katie Valk  Offline
And up to the 9% interest rates offered by successful credit unions like Holy Redemer with lower interest rates than the commercial banks. Makes moving money here to sit in higher interest savings accounts tempting and smart.

Belize based travel specialist
#410786 - 06/28/11 09:08 AM Re: BCB British Caribbean Bank drops 25% [Re: elbert]  
Joined: Mar 2001
Posts: 2,624
bywarren Offline
bywarren  Offline
OK, but try and buy something outside of Belize in Belize $, or even try to buy something else, like real estate, in Belize $ and see how far you get. If the Belize $ was traded on the international market, you would find its true value. And, that would be considerably less than 2 for 1 to the US $.
If Belize had an intenationally traded currency, it would be far better for attracting investment, but then the government would have to pay Belizeans in other than "funny money".

PS: in the 42 years I have been using Belize $, I don't ever recall exchanging my US for BZ at 2 for 1. But then again, I guess I am not as smart and tempted as Elbert and Katie.

Last edited by bywarren; 06/28/11 10:01 AM.
#410793 - 06/28/11 10:27 AM Re: BCB British Caribbean Bank drops 25% [Re: Cayemen]  
Joined: Dec 2006
Posts: 12,009
elbert Offline
elbert  Offline
'Funny Money'now your getting insulting.

The Dive Shops Daily Blog
#410803 - 06/28/11 12:17 PM Re: BCB British Caribbean Bank drops 25% [Re: Cayemen]  
Joined: Mar 2009
Posts: 273
Cayemen Offline
Cayemen  Offline
I just mention BCB, because many local real estate agencies using BCB's services for the escrow account involved in real estate transactions. But with this cash drain it looks for me not as a suitable option.

#410825 - 06/28/11 07:15 PM Re: BCB British Caribbean Bank drops 25% [Re: Katie Valk]  
Joined: Jan 2010
Posts: 602
Mike Campbell Offline
Mike Campbell  Offline
The biggest problem I see is the interest rates charged by the banks. As they are able to charge anything they want it is in their best interest to make a lot of loans, even if they are questionable in the strictest terms. Banks loan to young people with not very stable jobs and that don't really need the money that bad but that are basically honest and get them hooked into the credit game. They of course have a higher nonperformance rate because of the relaxed standards. This is used to justify the high rates they charge. Hmmm. This keeps the rate too high for businessmen to be able to use except in desperation and keeps the lid on growth.

If the banks were held at say 8% tops for any loan they would tighten up lending practices and the nonperformance rate would drop a lot. Additionally businesses would be able to access credit at a rate that would allow them to grow rather than paying everything to the bank to make up for their bad loans. Also, until we get some type of deposit insurance it is difficult to recommend depositing "life savings" amounts into the domestic system or the off shore system. Our banking regs need to be closely looked at. This has been a play ground for years and years and we have been charged outrageous rates with no protest from the government ever.

Belize dollar is a nonconvertible currency. It is privately traded in some Casa de Cambios but always in the parallel market, not through the banks. The fix is very simple for this, we need to very seriously consider going to dual currency which exists now except in the official market. This would attract many investors and would in my view solve many problems, I have advocated this since the "90s when we made US the official currency of the Free Zone. Free Zone businesses are allowed to have USD accounts.

#410831 - 06/29/11 07:26 AM Re: BCB British Caribbean Bank drops 25% [Re: Cayemen]  
Joined: Nov 2003
Posts: 475
TravelinMan1 Offline
TravelinMan1  Offline
Questionable Loans? Insolvent banks? Worthless money?


The liquidity rations for banks in Belize is about 15 times higher than any US bank and to this point the government has not had to bail them out.

You can get 9% interest on your BZD, in the US you might get 1% in a savings account. You can then buy USD at about 4% and still be ahead by 5%.

#410832 - 06/29/11 07:43 AM Re: BCB British Caribbean Bank drops 25% [Re: Cayemen]  
Joined: Nov 2003
Posts: 475
TravelinMan1 Offline
TravelinMan1  Offline
By the way Mike when you say a "higher non-performance rate" are you speaking of Greece, Portugal? I am pretty sure you don't mean the US where there is more than 5 million mortgages in default and let's not even get into short term credit.

Yes I agree we should try to make our system more like that in the US?

Get ride of evil men like Ashcroft and replace them with upstanding citizens like Madoff.

Any more financial wisdom?

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