The pages of The Anguillian, as well as the radio airways, have been replete with various views and comments since the unfortunate conservator-ship of the island’s two indigenous commercial banks – on August 12, 2013 – by the Eastern Caribbean Central Bank. The intervention in the National Bank and the Caribbean Commercial Bank was agreed to by former Chief Minister and Minister of Finance, Mr. Hubert Hughes, and had the support and involvement of the British Government, the World Bank and the International Monetary Fund.
The takeover was originally for six months, but has since been extended so that, as of now, the situation remains unchanged. What has changed is that Dr. Ralph Gonsalves, the Prime Minister of St Vincent and the Grenadines, who was at the time the Chairman of the ECCB’s Monetary Council, and a key player in announcing the conservator-ship of the Anguilla banks, is no longer in that latter position as of Friday, this week, July 24. Further, and as fate would have it, the new Chairman is Anguilla’s own Chief Minister and Minister of Finance, Mr. Victor Banks, by reason of a rotation process in the eight member territories. Ironically, that change of chairmanship is in Anguilla – not only the location for the Monetary Council meeting, also by rotation – but where the tedious and embarrassing banking problem lies.
Mr. Banks has been hard-pressed, even this week, to come up with answers to searching questions about the delay in returning control of the banks to Anguilla; whether or not there has been an official report about the findings of a forensic investigation into the operations of the banks; and what the present situation and future status of the institutions might be. However, coming to office as Chief Minister and Minister of Finance, just about three months ago, it is uncertain whether or not he possesses any more information than Mr. Hubert Hughes was privy to while in the same leadership position, since August 12, 2013, when the takeover of the banks began, to April 22, 2015, when he demitted office. Both men, however, have different personality traits – one more talkative and the other more conservative and confidential.
What is clear is that being Chairman of the Monetary Council, Mr. Banks appears to be in a relatively awkward situation with NBA and CCB under the control of a regional body. As Chairman of the Council, Prime Minister Gonsalves may have had some influence in helping to direct the discussions about, the future of our two financial institutions. Mr. Banks must now use whatever influence he may be able to bring to bear, as the new Chairman, to resolve the situation and set the banks on a course of recovery and return of control to the people of Anguilla. What other leader in the sub-region, in that unique position, would not seek a way out for the pride of his own island and nationals?
To be fair, however, much also depends on how our economy, as well as the impacting regional and global economies develop, and how our banks can survive in a difficult economic environment, while grappling with their own operational challenges. To put all of this in perspective, it might be useful to refer to some of the statements of Sir Dwight Venner, Governor of the ECCB, when the conservator-ship of the banks was first announced.
He stated, among other matters, that economic growth in Anguilla had “virtually collapsed falling from an average of 15.8 percent between 2005 and 2007 to an average contraction of 5.5 percent from the corresponding period 2008-2012.” He said non-performing loans at the banks escalated to levels beyond the guidelines set by the Central Bank and this, in turn, had resulted in the banks not meeting their capital requirements.” He added that the decision to take over the banks was intended to stabilize and restructure both financial institutions and return them to a state of normality as well as protect depositors and creditors.
That was almost two years ago. There is now a crying need to know just how the situation has evolved; what measures have been put in place to achieve those objectives; and approximately how soon all of us may be able to put this intolerable and demeaning situation surrounding our two banks to rest. Friday, July 24, the date for the meeting of the ECCB’s Monetary Council in Anguilla, is an excellent opportunity to divulge this vital and long-awaited information to the anxious and fearful people of the island.
