BASSETERRE, St. Kitts - THE Eastern Caribbean Central Bank (ECCB) has approved the sale of the First Caribbean St. Kitts and Nevis and also the St. Vincent and the Grenadines assets after it was reviewed in just under a year.
In a media statement, the Bank disclosed that it received confirmation yesterday (Jul. 15) surrounding the assets in the two territories.
The two institutions have received favourable responses from the ECCB.
Commenting on the transaction, Consortium Lead and Managing Director of the Bank of St. Vincent and the Grenadines Limited, Derry Williams, asserted, "We have made considerable progress having received approval of the acquisition of CIBC FirstCaribbean’s businesses in St. Vincent and the Grenadines and St. Kitts and Nevis. Our efforts are ongoing to complete the Grenada transaction and we support the decision made by the National Bank of Dominica Limited and CIBC FirstCaribbean in relation to the branch and operations in Dominica.”
On October 12, 2021, a Consortium of banks signed a definitive agreement to acquire the branches and banking operations of CIBC FirstCaribbean in Dominica, Grenada, St. Kitts and Nevis, and St. Vincent and the Grenadines.
The National Bank of St. Kitts and Nevis purchased the assets of CIBC in St. Kitts and Nevis, raising the question of too big to fail, since National controls a large percentage of the banking market in the Federation.
“Following regulatory applications to the Eastern Caribbean Central Bank (ECCB), the Consortium now further advises that: Today, the ECCB notified the parties of its decisions regarding the applications to acquire the branches and banking operations in St. Vincent & the Grenadines and St. Kitts & Nevis. The parties continue to discuss and negotiate key aspects of the transaction in the proposed sale of CIBC FirstCaribbean’s assets to the Grenada Co-operative Bank Limited,” the statement read.
Meanwhile, the Bank confirmed that the sale to Dominica has not been approved.
“The Consortium further announces that the sale of the assets of CIBC FirstCaribbean in Dominica to the National Bank of Dominica Ltd. (NBD) will not proceed as NBD has announced a change in its strategic direction.”
No official word has been forthcoming from the Eastern Caribbean Central Bank on the sale.
