The Eastern Caribbean Central Bank (ECCB) Saturday confirmed that it has received an application from Republic Financial Holdings seeking regulatory approval to acquire the Bank of Nova Scotia’s operations and businesses in the Eastern Caribbean Currency Union (ECCU).
The central bank said this application was received last Tuesday and nothed that Pursuant to the Banking Act, the ECCB has commenced its review of the application, and in this regard, it has held initial discussions with the Central Bank of Trinidad and Tobago and the Bank of Guyana.
“These regulators will collaborate on the review of this application” it stated adding that the ECCB will also confer with the Central Bank of St Maarten and Curacao.
The ECCB already regulates Republic Bank because it operates in Grenada. Republic also has a stake in a bank in S t Lucia.
“It has come to the attention of the ECCB that there is some speculation that Republic’s acquisition of Scotiabank’s operations in the ECCU could lead to the depletion of the foreign reserves that back the EC dollar. “Such speculation is unfounded and unhelpful,” the bank noted.
The ECCB stated that it is clear and resolute about its mandate to protect the EC dollar and wishes to make it abundantly clear that it will continue to maintain very high levels of foreign reserves as it has done for the past 35 years.
It noted that the proposed acquisition has prompted discussion about the ownership of banking assets in the ECCU. At present, 55 per cent of banking assets are owned by three Canadian banks and Republic Financial Holdings and 45 per cent of banking assets are owned by indigenous (national) banks.
“The proposed acquisition, if approved, would not fundamentally change that ownership distribution, as 55 per cent of the banking assets would be owned by two Canadian banks and Republic Financial Holdings and 45 per cent of the banking assets would continue to be owned by our indigenous (national) banks.”
From time to time, there will be changes in ownership of banks. Indeed, the proposed transaction is the latest in a series of consolidation moves by the Canadian banks.
“It is distinctly possible that there could also be some consolidation moves among indigenous (national) banks. Citizens and residents in the ECCU should come to expect these developments as part of the banks’ response to both global developments and competition in the ECCU banking space.
“Indeed, the ECCB continues to encourage indigenous (national) banks to cooperate and consolidate to ensure the interests of the people of the ECCU are best served. In this regard, we refer the public to our Consultative Paper on Consolidation of National Banking Sector in the ECCU published in July of this year.
“Citizens of and residents in the ECCU are encouraged to remain calm and stay abreast of developments in the banking sector,” the ECCB advised.
The Eastern Caribbean Central Bank (ECCB) was established in October 1983.
The ECCB is the Monetary Authority for: Anguilla, Antigua and Barbuda, Commonwealth of Dominica, Grenada, Montserrat, St Kitts and Nevis, St Lucia and St Vincent and the Grenadines.
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As I have said before let’s see who ends up with eggs in their face. Soon we will have to replace the B and O in the “World Boss” name with an R and an A respectively.
The salivating continues to rest hands on the money Scotia bank has. Imagine there is this “connsortium” of bank’s but not a statement has come out from them but rather the government. Isn’t that interesting?
Interestingly on the PM aligned staion on Saturday the chief of staff spouted the nonsensical argument about the reserves under threat. Having later noted that there was a release he was quick to note everything the release stated except the fact that it is all speculation and unfounded reasoning as to the potential impact on the EC dollar! Guess that was not consistent with the agenda!
Is Scotia bank a vestige of slavery? Are the share holders former colonial Masters?
What is the difference between Scotia Bank and the Privy Council?
Why fight to hold on to the slave relic? THESE LEADERS GOT ME CONFUSED WE EITHER WANT THE VESTIGES OR WE DON’T WANT THEM. JUST CAN’T HAVE IT BOTH WAYS..
Some persons are accustomed to seeing through the CHALICE smoke …
Here it is that this vestige of slavery do not want you and you are fighting to keep it at the expense ironically of the Trinidad based faniancial organization.
I don’t think the PM has any problem with Scotia Bank leaving the region,i think the problem is with the way it’s done.They have been doing business with the region for decades-they are ready to pack up and leave,no one can stop them,but should not the islands they serve have the first priority in determining if there are any entity in the different islands that may have interest in taking over the operations there?They just decided among themselves who they are selling to and its over.,no room for negotiations.That really should not be the way it works.. The name “Bank of Nova Scotia” may be theirs, but whose money do they use in the different Banks across the region?Its the property of the people of those Islands that they accumulate and turn into Billions in profits over the decades that they have already Repatriated to Canada. They should not have the last say as to who takes over the assets here or in other other Island.
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