A restructured banking sector is on the cards, Finance Minister Bob Richards said yesterday.

Mr Richards, delivering the Budget speech in the House of Assembly, said that banks were still not pulling their weight in helping to kick-start the economy.

“As Bermuda has no central bank, the influence Government has over the lending practices of banks is very limited,” he said. “That is why it is so important that other sources of capital be brought to bear to fuel recovery for Bermuda’s economy.

“Government is studying various options to restructure the banking sector and it continues to be in discussion with the banks about these and other relevant issues.”

Mr Richards used the Budget speech last year to launch a blistering attack on the banks.

He said that tough lending policies and low interest rates on deposits were “at odds with Bermuda’s national interests”.

Mr Richards told Members of Parliament that “conditions have deteriorated” since then, with figures showing that the number of bank loans had dropped in 2014.

“Moreover, figures from Government sources indicate that employment in the banking sector has decreased by more than 200 people during the first three quarters of 2014,” he said.

Figures released alongside the Budget statement showed that lending in 2014 amounted to $4.94 billion — down from $5.23 billion the year before.

Mr Richards yesterday declined to comment further on what form bank restructuring may take or what had been discussed with the banks.

Spokesmen for the big two banks — HSBC and Bank of Butterfield — also refused to comment and referred inquiries to umbrella organisation the Bermuda Bankers’ Association (BBA), headed by HSBC chief Richard Moseley.

A spokeswoman for the BBA said: “The Bermuda Bankers’ Association is committed to being a leading contributor in the development of public policy on the financial services sector and to ensuring that the legal and regulatory framework governing financial services operates in an efficient, effective and fair manner.

“As such, the BBA, as part of its usual ongoing operations, is in regular dialogue with both the Government and trade organisations about various aspects of the provision of financial services in Bermuda.

“Mr Richards’s comments in the Budget statement have been noted, and as is the case with all stakeholder feedback to the BBA, they will be reviewed as a matter of course.”

The spokeswoman added: “Banks support the functioning of the economy through the provision of services, but contribute even more to the community as an employer — over 90 per cent Bermudian — and consumer of goods and services. By virtue of our capital strength, we’re well positioned to make loans to drive future growth.”