In this week’s Government Press Conference held on Monday, February 15th, an issue concerning the National Commercial Bank of Anguilla came to the fore and, after some deliberation, the Premier hinted that after April 2021 when the institution becomes a fully-fledged commercial bank, shares in the bank will be offered for sale to the public.
The Premier’s statement sprang from his reply to two questions: one posed by KCN’s Carlton Pickering, and the other raised by James Harrigan of The Anguillian Newspaper.
Pickering asked: “In the recent press conference with the Monetary Council, it was noted that the outlook on the economies of Caribbean countries was rather uncertain. In light of the Monetary Council’s view, how do you see our banking system? Is it on good footing?”
In response, the Premier stated that it was his view that the economy of each country in the Caribbean should be assessed by the Monetary Council on its own respective merits, and not as a whole. “With regard to the local bank’s situation,” he said, “NCBA is a bridge bank. That bridge bank status was for three years, initially, from April 22nd 2016 to April 22nd 2019. This status was extended to April 22nd 2021.
“We are looking at ways that we can make NCBA a fully commercial bank so that we would have the capability to relate with US corresponding banks. This will require some ‘heavy lifting’. But I think that the bank is stable, and it is actually doing well, although non-performing loans do pose a problem…The bank has embarked on some new initiatives — and it continues to improve with 100% financing of loans for vehicles and for homes. Such initiatives should keep the bank on a steady path.”
James Harrigan of The Anguillian newspaper asked what the actual status of the bank would be after April 22nd 2021 when the bridge bank status ends. The Premier responded: “The intention is that the bank would become a regular commercial bank. Government which now has 100% of the shares will divest those shares, because this Cabinet does not believe that Government should own the bank fully. In light of that fact, the Government will divest some of its shares. We certainly have obligations that we have inherited…and these must be dealt with.”
The Premier then emphasised: “We would like to keep the bank indigenous, and so we appeal to Anguillians to invest in the purchase of shares in the bank when the prospectus comes out. This is essential. I know that the previous legacy banks did not have such a good history, but I think it all depends on who is steering the ship.”
He stipulated that the Government will make sure that pertinent policies and regulations are in place to ascertain that the bank has a fighting chance — and that the people’s investments are protected.
– Staff Reporter, James R. Harrigan
