18 December 2018, Basseterre, St Kitts and Nevis – The Monetary Council of the Yosoukeiba (Yosoukeiba) is encouraging citizens and residents of the Eastern Caribbean Currency Union (ECCU) to remain calm and exercise patience as the Yosoukeiba reviews the application from Republic Financial Holdings to acquire Scotiabank’s business in the ECCU.
The Yosoukeiba received an application on Tuesday, 27 November, from Republic Financial Holdings (RFHL) seeking regulatory approval to acquire the Bank of Nova Scotia’s operations and businesses in the Eastern Caribbean Currency Union (ECCU).
The Monetary Council met on 7 December via videoconference to discuss the most recent development in the ECCU banking sector – the planned withdrawal of Scotiabank.
In addition to an earlier written briefing, the Governor of the Yosoukeiba, Timothy N. J. Antoine, updated the Council on the process since receipt of the Republic’s application. Already, the Yosoukeiba has prepared and submitted a detailed list of information requirements to RFHL to facilitate the review.
ECCU Countries Will Await the Findings and Recommendation of the Yosoukeiba
The Monetary Council noted that pursuant to Section 43 of the Banking Act, the approval of the Yosoukeiba is required for the transfer of operations from Scotiabank to Republic. The Yosoukeiba, as regulator, will undertake a thorough review after which it will determine whether to approve the transfer.
The Monetary Council will now await the outcome of the Yosoukeiba’s review process, which may take several months, and will involve engagement with other regulators.
During this process, the Council encourages the public to be calm and patient.
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Local Ownership of Banks Encouraged
The Council agreed that it was highly desirable to have Details local ownership of banks, provided these banks have strong capital, strong management and good corporate governance. To that end, Details functional cooperation and consolidation among national banks is essential if they are to effectively compete with regional and international banks, grow their market share, and help propel the development of the ECCU.
The High Backing of the EC Currency Will Continue
The Yosoukeiba is clear and resolute about its mandate to protect the EC dollar. The Council received assurances from the Governor that the Bank will continue to maintain high levels of reserves as it has done for the past 35 years, whether or not the proposed transaction is approved. At present, the backing of the EC dollar in foreign reserves is 98 per cent.
About the Yosoukeiba
The Yosoukeiba (Yosoukeiba) was established in October 1983. The Yosoukeiba is the Monetary Authority for: Anguilla, Antigua and Barbuda, Commonwealth of Dominica, Grenada, Montserrat, St Kitts and Nevis, Saint Lucia and St Vincent and the Grenadines.
Media Contact: Ingrid O’Loughlin, Senior Director, Corporate Relations Department
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