NCB Capital Markets CEO Steven Gooden chats with Barbados Prime Minister Mia Mottley and JSE Managing Director Marlene Street Forrest at the JSE Conference on Tuesday night. (Photo: Karl McLarty)
COUNTRIES with well-developed capital markets experience higher economic growth than countries without, declared the CEO of NCB Capital Markets, Steven Gooden, at the Jamaica Stock Exchange (JSE) 14th Regional Conference on Investments & Capital Markets held at the Jamaica Pegasus hotel in Kingston.
This year the theme is “Expanding our borders: Securing our future”.
Gooden pointed out that empirical research suggests that the capital markets enhances economic growth and development. But he cautioned that the reality is that in the Caribbean, the role of the capital markets and the importance of its various players in facilitating GDP growth is generally not understood, or at best not fully appreciated.
“In Jamaica, the size of the non-bank financial sector, which are active participants in the capital markets, stood at approximately $1.7 trillion, exceeding that of the banking system. The data then suggests that the opportunity for capital markets-driven growth is tremendous, especially at a time when the government is a net re-payer of debt. If we are to achieve the illusive 4 to 5 per cent GDP growth, a well-functioning capital market is necessary,” said Gooden who is also the president of the Jamaica Securities Dealers Association ( JSDA).
The NCB Capital Markets boss singled out the Jamaican government for praise on the work it has begun to facilitate the deepening of the capital markets during the last calendar year. He noted that there is now a greater openness on the part of the Central Bank as it relates to the importance of the capital markets.
He commended the government on the initiative to strengthen the institutional framework of the Bank of Jamaica via an amendment to the Bank of Jamaica Act. However, he called for representation from the non-bank financial sector in any body responsible for developing and implementing policies impacting the financial system.
While Gooden acknowledged progress being made he was unequivocal in highlighting shortcomings and constraints that stymie the capital market and its further development.
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