Bank of Montserrat to possibly restructure in ECCB compliance and shareholder dominance
At his most recent press conference which was jointly hosted by H E Governor Davis and the Hon Chief Minister Meade, the Chief Minister revealed that Government had entered in discussions with Bank of Montserrat Ltd. (BOM) to examine ways of restructuring in line with requirements being set out by the Eastern Caribbean Central Bank (ECCB)
Bank of Montserrat
The CM told the press, “there is a statutory requirement of the ECCB of a particular level of capital – currently set at eight percent (8%); there are some of the banks who are bordering on that that eight percent… some are building up…” adding “what we (ECCU) are seeking to do is to ensure that they all meet those statutory requirements.”
He said the same thing is being done for BOM and meetings have been held with the Bank’s board. “…we have to look at the modalities of insuring that happens… the same thing is being examined for the Bank of Montserrat,” he said, adding that developing the prospective would be put in the public domain.
He also revealed that the bank following its annual general meeting had been putting a proposal to the Government as majority shareholder, that the government “should consider reducing its shareholding position within the bank from a dominant position.”
He confirmed: “…the modalities for doing that we have agreed in principal…” and that ”it is now for the Bank of Montserrat to come back with proper documentation, not only to Government of Montserrat but also for circulation to the general public and the shareholders.”
With Government, “amenable to the concept,” the Chief Minister also revealed that St. Lucian Mr. Mario St. Rose, an eminent banker, who is a director of BOM would have to resign his position, but would while in transition to his new position with the ECCB, “he is in fact leading the discussions on that restructuring of Bank of Montserrat in terms of the Shareholding situation.”
Some of Bank of Montserrat Board members at 2011 AGM
The Chief Minister explained that Mr. St. Rose assumes the chairmanship of the Resolution Trust Company established by the ECCB. He said the function of the Trust is basically looking at, “not only banks operated under emergency powers of the central bank but in relation to other banks under stress… and how do we deal with closing the gap in relation to the re-capitalization of all of the banks in the Eastern Caribbean Currency Unit *ECCU) ensuring the protection of depositors.”
