CIMA Chairman discusses crucial role of Cayman financial services
Previously, it has been discussed that CIMA Chairman predicted positive growth for local financial industry. It is also worth discussing additionally that on January 10, 2008, Chairman of the Cayman Islands Monetary Authority (CIMA) Tim Ridley underlined the crucial role of financial services to social and economic stability and summarised some issues facing the industry to the Rotary Club.
Ridley emphasised that he was speaking in a personal capacity, so he separated the Authority from his remarks, when calling for more competition and moderate regulation as well as indicating the industry’s underlying support for local employment, education and infrastructure.
Ridley said that the jurisdiction had managed to avoid the problems of other regional financial centres, however, it was facing certain domestic problems.
According to Mr Ridley, the financial success of Cayman “was principally founded in an extremely effective partnership between the government, the financial industry and the broader local communityâ€. Also, “Outside events helped. Bahamian nationalism (independence itself was not the problem; aggressive nationalism was) kick-started the banking industry, and the assassination of the governor and an ill-advised regulatory decision in Bermuda accelerated the captive-insurance industry. But that success now faces risks both abroad and at home.â€
Ridley suggested that the local economy could not compete for outsourcing opportunities with larger countries, however, he said, it must focus on providing excellent service to high-value-added business using as little labour as possible. He called for improving the efficiency and greater investment in education, training and technology to have the tools to compete internationally.