Royal Bank of Canada says it’s committed to banking in the Caribbean region, even after selling its bank in Jamaica and booking a loss.
Have a look at what shareholders are getting from the region. Then you can ask yourself why the biggest bank in the country is bothering.
First off, there’s the region. Most of the economies in the area have experienced terrible pain since the financial crisis. The crisis and recession hit hard, cutting tourism and throwing people out of work. The effect on banks in the region was harsh. Non performing loans spiked, as consumers lost income and commercial properties suffered. Economies shrank, and some are still shrinking.