I, as Chairman of the Board of Directors of the Caribbean Commercial Bank (Anguilla) Limited would like to inform its stakeholders, customers and shareholders that C.C.B has been in discussion with the Eastern Caribbean Central Bank since last year with respect to certain recommendations made to the Bank by the ECCB. In October 2012, C.C.B signed an MOU with the Central Bank by virtue of which CCB agreed to implement the recommendations of the Central Bank. C.C.B. has fully complied with the terms of the MOU. Since October 2012, the Caribbean Commercial Bank’s financial position has improved. The Central Bank demanded , that C.C.B increase its tier 1 capital by an additional EC$70 million within thirty (30) days of the date of the letter being 16th July 2013. That is to say, C.C.B was required to find an additional $70 million to add to its existing capital of $49 million within thirty days (which included the summer festival holidays and weekends). This was a demand to increase C.C.B’s capital to 25% of the loan portfolio whereas the ECCB regulatory requirement, and the international industry standard is 8% which C.C.B has always maintained. Please be assured that Caribbean Commercial Bank is not in any financial difficulty. It is and has always been solvent, profitable, and has always met the demands of its depositors and creditors. C.C.B has always complied with ECCB’s requirements. The actions of the Minister of Finance and Chief Minister, Mr. Hubert Hughes, working in conjunction with Central Bank, in empowering the Eastern Caribbean Central Bank to step in, dismiss the C.C.B Board, and summarily fire the Bank Manager are not justifiable based on the facts associated with C.C.B. We assure our stakeholders, customers and shareholders that we are exploring all legal remedies available to us, and that this unjustified action on the part of the Ministry of Finance and the Central Bank should not cause any concern about the financial viability and sustainability of the Caribbean Commercial Bank. I am disappointed with Mr. Hughes’ support of this high handed and unnecessary action by the Central Bank. I wish to assure you that without the approval of the Chief Minister and Minister of Finance of Anguilla, the Central Bank would have never had the authority to enter into Anguilla and take over the indigenous banks. We are yet to understand the real reason for this action, as other banks in the region are in worse condition than C.C.B with respect to their non-performing loans, and with respect to the operating costs, and no action has been taken against those banks. We need to ask those in Authority: ‘Why C.C.B. and why now?’ I assure you that this action has nothing to do with the management, directorship or financial position of the Bank, but is more than likely related to the 8 Point Stabilization Plan for the Eastern Caribbean Currency Union issued by the Central Bank in 2009, which provided specifically in section 2.7 that:
“The amalgamation of indigenous commercial banks, as the name suggests, would create a strong financial entity which would be a crucial player in the financial and economic development of the countries of the Currency Union. Amalgamation would also allow the indigenous banking sector to take advantage of economies of scale and scope, efficiencies in operations and increasing opportunities for more diverse state- of-the-art banking services.”
We have been under constant pressure to merge both indigenous banks and ultimately to merge with the St. Kitts Nevis National Bank. I raised this matter with the Governor of the Central Bank K Dwight Venner and rather than give a direct answer to a direct question, the Governor of the Central Bank insisted that the merger would be done either by moral suasion or otherwise.
(Published without editing by The Anguillian newspaper.)
