Competing in the Capital Markets Arena Ramcharan Kalicharan CFA

Date: 13 th November 2007 – CAIB Conference The Capital Markets Market for long term funds where securities are traded  Primary market  Secondary market  Equity  Debt

Date: 13 th November 2007 – CAIB Conference Capital Market Services Underwriting  Equity  Debt Secondary trading/brokerage services Investment Management  Mutual funds  Portfolio management

Date: 13 th November 2007 – CAIB Conference Underwriter Individual & Corporate Investors Government & State Enterprises Corporations Marketing & Distribution New Debt IssuesDebt RefinancingEquity Issues Underwriting & Arranging Structuring Investment Manager Institutional Investor Broker/Dealer Primary Market Secondary Market Overview of the Capital Markets Mutual Funds

Date: 13 th November 2007 – CAIB Conference Caribbean Capital Markets Bond market dominated by government issues Few rated issues Few corporate issues Multinationals dominate large issue market Organized secondary equity markets but not bond market Growing mutual fund market  Trend: Growth in capital markets will be driven by demand for securities.

Date: 13 th November 2007 – CAIB Conference Benefits of Developed Capital Market Mobilize domestic savings Permit raising of long term capital at lower costs Efficient and competitive financial system Permit individual participation through issue of securities  Government and regulatory push to develop capital markets

Date: 13 th November 2007 – CAIB Conference Why Compete in the Capital Market? A growing market with large revenue potential Diversify income base Defensive strategy Synergies with other lines of business Balance sheet management Competitive advantage:  Existing relationships  Risk assessment and pricing  Strong balance sheet to support underwriting

Date: 13 th November 2007 – CAIB Conference Competing Effectively Board decision to enter Identify and recommend areas to focus on Assign separate resources to compete in this market Implement risk management framework Introduce lateral integrating mechanisms Partnering to share risks and acquire expertise

Date: 13 th November 2007 – CAIB Conference Thank You