Trinidad and Tobago is by far the largest Caribbean financial centre in terms of its banking sector. The size and profitability of its lenders make up about 45% of the regional total, with its Tier 1 capital representing an even higher proportion, at almost 50%. The gas-rich country's financial sector contributes 10% to its non-energy gross domestic product (GDP), according to the central bank.
It therefore came as a surprise that a survey to test the country's population’s understanding of financial products five years ago indicated that only a small proportion of respondents could be described as financially literate. “Questions were about financial practices, how you save, how you invest, plans for retirement,” says Jwala Rambarran, governor of the Central Bank of Trinidad and Tobago. “We got a better sense of the level of financial literacy and it was pretty low; about one-third of the population had a low level of financial literacy. In a country where the financial sector is a major player, a key part of our non-energy sector, there is a lot of work that needs to be done.”
