Minister of Housing and Urban Renewal, the Hon. Keith Bell has accused local banks of systemic prejudice when it comes to mortgage lending.
During a recent key presentation Minister Bell said, “an individual walked into my office with $12,000 cash. He showed me his bank account with $100,000 as a deposit for a home. Another individual, she sell the 99 cent breakfast, she has $90,000 cash for a home and cannot qualify at a bank.”
Fidelity Bank Chief Executive Officer, Gowon Bowe responded to the bias claims on Monday. He said, “I think the minister’s comments may be taken, in my view, as one off’s that have been used to broad brush an industry.”
Bowe explained how the applications of the self employed are processed. He said, “so the first thing that has to be assessed is what are the prospects of these persons are putting forward in order to borrow money. So how are they demonstrating that they have consistent cash flows, that they have the ability to meet the monthly payments of the loans for which they are applying or seeking funding for.”
The banking CEO also said the cash flow of a business is also taken in consideration when being assessed for a loan such as susceptibility to peaks and troughs like tourism which has its slow periods.
