The Central Bank of Barbados has robustly defended Governor Dr Kevin Greenidge’s appointment to the African Export-Import Bank board, dismissing concerns about potential conflicts of interest while highlighting the strategic benefits of strengthening Barbados’ position in international finance.
In a statement issued on Monday in response to recent queries, the bank said: “The governor’s appointment to the Afreximbank Board fully complies with the Central Bank of Barbados Act, 2020-30, and poses no conflict of interest with his responsibilities as governor.”
The Central Bank pointed out that the Central Bank Act allows the governor to accept external appointments, provided they are approved by the Central Bank’s Board of Directors. This specific appointment received the necessary approval.
“In accordance with the Act, the governor may accept external appointments with the approval of the Central Bank’s Board of Directors. This appointment has received such approval,” the bank emphasised.
Furthermore, the Central Bank stressed that the governor’s service on the Afreximbank Board is performed on a pro bono basis. “Importantly, the governor receives no remuneration for his service on the Afreximbank Board. His work on the Board of the multilateral is pro bono,” the statement read.
The bank also explained the distinct regulatory roles of the two institutions, saying that Afreximbank is a multilateral financial institution that operates outside the regulatory jurisdiction of the Central Bank of Barbados while the central bank regulates and supervises domestic financial institutions in the island and not international multilateral development banks.
The Central Bank described the governor’s participation on the Afreximbank Board as a strategic advantage for Barbados.
“The bank views the governor’s service on Afreximbank’s Board as an opportunity to deepen Barbados’ international financial relationships and enhance the bank’s own strategic perspective through global engagement,” the statement continued.
The Central Bank also highlighted that this practice is in line with international norms.
“Moreover, this appointment aligns with established international practice, as evidenced by the participation of Central Bank governors from three other jurisdictions, as well as a deputy and a sub-governor, also serving on the Afreximbank Board,” the Central Bank concluded.
(BT/PR)
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