Both Sides of The Coin: The Story of The Central Bank of Barbados 1972-2017

16 Bernard St. John, the Opposition’s main speaker, referenced Dr. C.Y. Thomas’ thesis that the new regional central banks were still functioning like currency boards. He felt that the Bank needed to display some “ruthlessness” in order to establish a capital market. Senator Maurice King (later Sir Maurice) appealed for optimism about the Bank’s future, pointing out that the institution’s function was not to create an indigenous banking sector. Senator Louis Tull (later Sir Louis) was concerned about the Bank’s administrative costs and its inability to control consumer spending. In committee session, doubts were raised about the Bank’s ability to report to the minister of finance within the agreed timeframe, given the experience of other statutory bodies. 12 Senator St. John suggested, unsuccessfully, that if the minister received the accounts after the statutory date he should be required to inform Parliament. When the full sitting resumed, on a motion put by Senator Taitt and seconded by Senator Cameron Tudor (later Sir James), the entire Bill was then read a third time and passed. As in the House, the debate had lasted for about two hours. The Bill was signed by the governor-general on March 23, 1972. The Central Bank of Barbados Act was proclaimed in the Official Gazette of March 30, 1972, and came into effect on May 2, 1972. Regional comparisons According to the Act, the functions of the Bank were to: regulate the issue, supply, availability and international exchange of money; promote monetary stability; promote a sound financial structure; foster the development of money and capital markets in Barbados; and foster credit and exchange conditions conducive to the orderly and sustained economic development of Barbados. (a) (b) (c) (d) (e)