The United Kingdom Government has now cleared the way for the resolution of the banking crisis that has plagued Anguilla since the National Bank and the Caribbean Commercial Bank were both placed under the conservatorship of the Eastern Caribbean Central Bank in August 2013. Governor Christina Scott issued a press release on Monday, this week, April 18, stating that, acting on the instructions of the Minister for the Overseas Territories, she had assented to the three pieces of enabling legislation passed in the Anguilla House of Assembly.
Following is the Governor’s press release:
ASSENT GIVEN TO BANKING RESOLUTION LEGISLATION
Upon instruction from the UK Minister for the Overseas Territories, Mr James Duddridge, HE The Governor, Ms Christina Scott, has today assented to the Banking Act, 2015, the Eastern Caribbean Asset Management Corporation Agreement (Amendment) Act, 2016, and the Bank Resolution Obligations Act, 2016.
Governor Scott said:
“UK Ministers’ objectives for a resolution to Anguilla’s banking difficulties have remained consistent since 2013: to ensure the banking resolution is sustainable and affordable to the Government and people of Anguilla; and to minimise the chance of another banking crisis happening again in Anguilla.
In 2015 the Chief Minister and Government of Anguilla decided to progress the Eastern Caribbean Central Bank’s proposed resolution plan. Since then the UK Government has engaged in discussions with the Government of Anguilla, the Eastern Caribbean Central Bank, the International Monetary Fund, and the Caribbean Development Bank.
The UK has now received written assurances on a number of points from both the Government of Anguilla and the regional financial institutions that have designed and will lead the resolution process. These include agreement to bylaws for the new bank that include safeguards to ensure sound management and oversight by a Board of Directors, ensuring arms-length accountability to the Government of Anguilla. An experienced banker has been appointed as Deputy Chair of the Board, specifically responsible for good governance. The ECCB has also provided assurances both that plans are in place for an suitably qualified individual to be appointed as the interim receiver, and also that the Eastern Caribbean Asset Management Corporation (ECAMC) will be operational by the end of June to start its important work. The Government of Anguilla has committed itself to an ambitious economic reform programme, which the Chief Minister has said he will make public. The UK will support the economic reforms, and the overall management of public finances, including by funding a Financial Advisor who will work in the Ministry of Finance; recruitment of that person is underway.
There is much more hard work to be done in the coming months and years to realise the potential success offered by the framework of the resolution plan and the legislation. I look forward to working with the Government of Anguilla and its international partners as they deliver on assurances given in recent weeks, so that the best possible result for all the people of Anguilla can be secured.”
Chief Minister and Minister of Finance, Mr. Victor Banks, delivered a radio broadcast on Monday saying, among other things, that the UK Government’s assent of the 2015 Banking Act was long in coming, but had turned a new leaf for the Anguilla Government to move forward with the Bank Resolution Plan.
Following is the text of the Chief Minister’s address:
“Fellow Anguillians,
I am grateful that the United Kingdom Government has now proceeded to grant assent to the 2015 Banking Act which was passed in the House of Assembly in November 2015. I thank Her Excellency, the Governor for the role she has played in making this a reality today. Assent has been long in coming but now allows us to proceed swiftly with implementing the Bank Resolution Plan. Above all, however, I must commend you the people of Anguilla for the patience and faith you have demonstrated since the placement of NBA and CCB under conservatorship in August 2013. Anguilla needs to now turn a new leaf from this period of uncertainty surrounding our two indigenous banks and to do what is necessary to give rise to the dawn of a new day. It’s time to move on!
As I would have indicated in numerous Press Conferences over the pasts months and the many debates in the House of Assembly concerning the Bank Resolution Plan, simply put, it involves transforming the “good bits” (performing loans matched by an equivalent level of deposits) of NBA and CCB into a new financial institution, the National Commercial Bank of Anguilla, and transferring the “bad bits” (non-performing loans) to the another new financial institution, the Eastern Caribbean Asset Management Corporation. Deposits not transferred to the new Bank, such as the Social Security deposits and deposits of large depositors have been protected by legislation in the form of the Bank Resolution Obligations Act 2016.
Many of you have expressed sadness in what you view to be the demise of NBA and CCB. But I say to you that this is an inevitable change given the circumstances of these instituitions. It therefore means that out of necessity we must embrace this change. In formulating the Bank Resolution Plan with our Stakeholders Group (the ECCB, the United Kingdom Government, the International Monetary Fund, the World Bank and the Caribbean Development Bank) we have been guided by certain key principles. You indicated that the continuation of an indigenous banking presence in Anguilla was important to you. We have respected your wishes, in this regard, and the new financial institution, the National Commercial Bank of Anguilla will be a wholly owned Government bank – that is, it will be owned by you the people of Anguilla. In due course, NCBA will be privatized to allow Anguillian persons and investors to participate. So we would have come full circle and as such – the dream lives on.
Plans are well underway with our stakeholder group to launch NCBA. The Board of NCBA has been diligently working behind the scenes to fulfill the requirements necessary for the ECCB to license the Bank. It is a well constituted Board of experienced Anguillian and regional and international individuals in whom we have every confidence. In transitioning to NCBA the aim is that customers of NBA and CCB will experience little change in their daily banking routine. You will hear more about this in due course.
I will close by again thanking all Anguillians for the patience and faith you have shown throughout this period of challenge. I implore you to continue to have faith, as we take this next step into a new future in banking. As a Government we can assure you that we are committed to protecting your deposits and ensuring that Anguilla has a safe and sound banking system. In this regard, we are happy to have the full support of the Stakeholder Group – The Eastern Caribbean Central Bank, the United Kingdom Government, the International Monetary Fund, the World Bank and the Caribbean Development Bank in taking this forward.
May God Bless You and May God Bless Anguilla.
Victor F. Banks
Chief Minister”
