The St Kitts-based Eastern Caribbean Central Bank (ECCB), in consultation with the ECCB Monetary Council announced on Saturday that it has approved the application for the transfer of the assets and liabilities of the Bank of Nova Scotia (BNS) to the Republic Financial Holding Limited (RFHL) in Anguilla, the Commonwealth of Dominica, Grenada, St Kitts and Nevis, St Lucia and St Vincent and the Grenadines, in accordance with Section 43 of the Banking Act.
In a statement posted on its website, the ECCB said that discussions on the future of Scotia bank’s operations in Antigua and Barbuda are ongoing.
The ECCB Monetary Council met on 6 September, via video-conference, to discuss the ECCB’s assessment of the Republic Financial Holdings Limited’s application to acquire the Bank of Nova Scotia’s operations in ECCB member countries.
The ECCB undertook a review of the proposed transaction to assess the following:
1. The RFHL’s Strategic Plan 2018-2020; 2. The financial condition of RFHL to support the operations of the acquired banking business of BNS, as well as all of RFHL’s subsidiaries; 3. The implications for the stability of the ECCU banking system; and 4. The technical/human resource capacity of RFHL to effectively govern its subsidiaries across multiple jurisdictions.
“In completing its assessment, the ECCB consulted with the Central Bank of Trinidad and Tobago (CBTT), RFHL’s home regulator. The approval granted to the RFHL is subject to the condition that RFHL will be required to make a stake of its ECCU operations available to the people of the ECCU through approved ECCU entities,” said the statement.
The ECCB said that it is in the process of communicating the requirements for finalisation of the transaction between RFHL and BNS and will continue to monitor the process to ensure full regulatory compliance.
“The ECCB believes that Republic Bank’s corporate banking record and its extensive network of correspondent banks will bode well for the ECCU banking sector. The ECCB is resolute about its mandate to protect the EC dollar and will continue to maintain high levels of foreign reserves while protecting the stability of the banking system,” said the ECCB.
It encouraged citizens and residents in ECCB member countries to stay abreast of developments in the financial sector.