Mostly in one of the banks as loan installments!

Lets say we accept this situation. Can the government “just” request the house owners to refrain increasing the house rent when the banks are always waiting for the moment to seize their buildings?

I really doubt so.

We all know that the banks are enormous profit year after year. Our interest rates could be one of the highest in the world (although I don’t have any data to back this up).

Will it not be possible for the government, through RMA, to lower the interest rates, which could eventually retard the soaring house rents. Instead of making it harsh on the banks, RMA can reduce amount of cash/security that the banks are required to deposit with RMA. I have no idea how the reduced cash deposit with RMA is going to affect the economy.

Forgive me if you find this silly. After all, I am neither an economist nor a banker.

Some food for thought for BOB.

I had the opportunity to travel and bank in several locations around the globe. I see a huge difference in how our banks conduct.

Let’s say, a small island in the Turks and Caicos Islands, much smaller than Bhutan and equally less developed, their banks are still awesome. The employees are smartly professional. From the moment I enter a bank, I am greeted and treated as an individual. They make me believe that I am a special person for banking with them. My every question is promptly answered or directed to the next level and they go the extra mile in making sure I understood everything they had to offer. They understand that I do not understand ‘The System” or ‘Their Policies” and that all I care is about my hard earned money.

Calling a bank around the globe is easier. I am always greeted professionally with the name of the agent. My every question is answered and finally, they agent signs off repeating her name, asking if she answered my questions fully and thanking me for banking with them.
Back in Bhutan, I have to prepare myself with the words I chose to use. I have to use all the flowery words. If I am calling form overseas, I should use minimal English as I will be criticized for my accent and often I am asked if I have become an American.
(I wonder what gives a bank teller the right to ask me such questions) Most of all, I have to really watch that I do not sound like I am questioning their service otherwise my long expensive call will be futile. The agents mostly tell me they are “busy” and do not have the time to answer my questions. (I wonder again, what they are busy with since they cannot attend to a customers need)
One time, I called up a bank to ask about their “Personal Loan” scheme. I got a nasty laugh filled with sarcasm. The agent rather told me how difficult it is to get a loan before I had even completed my question. She elaborated on the impossibilities and never asked me or considered my capabilities as a potential customer. I had been banking with the same institution for over 5 years with a ‘handsome’ balance at all times.
Else where around the globe, the moment I tell a bank I need a credit, I am offered a sit and I become the most important man to that banker.

Banking in Bhutan is harder than asking a stranger for a favor. The banks seriously need to reconsider their professional customer conduct beginning with answering telephones to meeting and greeting customers as an individual.

Ray Kroc, the founder of McDonalds said: “Take care of the customer, and the business will take care of itself.”

Drive that to the banks. They need it

Thank you,

Lobxang

Dasho Tsokpon Uygen retired saying that it was time for a younger leadership and we hope that this will happen.

It almost seem that some POLITICS is in play already which is SAD.

But, I want my banks to be “conservative” in managing my money. So, calling Bhutanese Banks conservative is a praise they don’t deserve. I’d call them lazy!

Their declared profits are no surprise. With little competition to speak of, and loans fully collateralized, heck, anybody can make money.

And, don’t forget. A portion of banking spread between lending and deposit rates is their administrative cost. That cost is excessively high for our banks. That means they are highly inefficient in doing business.

We all know that so well, don’t we? It takes just one visit to a reputable bank overseas to see the night and day difference in efficiency, and in how we are served as customers!

And, thank you for remembering our farmers!

I am thinking of starting an All Bhutan Farmers’ Cooperative, with farmers as the shareholders. Individually, we might be small in financial terms, but we can unite and empower ourselves to help ourselves. We can pool our savings, provide small loans and crop insurance, and share the risk among ourselves. What do you think?

At the least, we will need no collateral. We farmers know how to judge the creditworthiness of fellow farmers, better than anybody else!