ECCB takeover of Antiguan bank defended

The Eastern Caribbean Central Bank (ECCB) Friday announced that it had assumed control of the ABI.

Wikimedia Commons

Basseterre

BASSETERRE, St Kitts, CMC – Chairman of the Ministerial Subcommittee of the Eastern Caribbean Monetary Council, Dr. Denzil Douglas, Saturday said that the problems facing the Antigua-Barbuda Investment Bank (ABI) could have resulted in danger to the banking system in the entire sub-region.

The Eastern Caribbean Central Bank (ECCB) Friday announced that it had assumed control of the ABI in an effort to save it from collapse.

ECCB Governor Sir Dwight Venner said that with the assumption of control, the affairs of the bank will be carried out by Central Bank staff, with the support of a dedicated group of bank specialists and the current staff of ABI Bank. This, he said would ensure the continuity of normal banking operations.

“The Government of Antigua and Barbuda and the Central Bank continue to work together very closely to ensure that all steps are taken to protect the interest of depositors and creditors of the ABI Bank,” he said.
|
In a statement, Dr. Douglas, who is also the Prime Minister of St. Kitts and Nevis, said that the activities of the AIB had been under scrutiny for some time by the relevant “and the danger this could pose to the banking system of Antigua and Barbuda and the entire (Eastern Caribbean) Currency Union (ECCU).

He said after due consideration the ECCB has been directed to take over the bank in order to maintain the stability of the banking system.

“We face some very serious challenges at this time and the Monetary Council has established several institutional arrangements to address these issues in the financial system.

“It is for this reason that a Sub-Committee on Banking was set up, given the critical importance of the banking sector in the commercial and economic life of our countries.

“We have been able to focus our attention on this sector by using international best practices of stress testing and asset valuation to gain a comprehensive understanding of the risks and vulnerabilities of this sector.  It is through these methodologies that we have been able to detect the situation at the ABI Bank and have decided to act to resolve the matter.”

Dr. Douglas said he was appealing to “all persons who do business with the ABI Bank to have patience and understanding as we go about the task of applying the necessary remedies to this case.

“Let me reassure you that the preservation of the indigenous banking sector in Antigua and Barbuda and by extension, the Currency Union, is one of our highest priorities.

“We are confident that the collective action taken by the Government of Antigua and Barbuda, the Monetary Council, and the Central Bank will serve to successfully resolve the situation at the ABI Bank and hasten its return to normalcy,” Dr. Douglas added.
CMC/pr/11

Normas para comentar:

  • Los comentarios deben estar relacionados con el tema propuesto en el artículo.
  • Los comentarios deben basarse en el respeto a los criterios.
  • No se admitirán ofensas, frases vulgares ni palabras obscenas.
  • Nos reservamos el derecho de no publicar los comentarios que incumplan con las normas de este sitio.