But is prepared for its occurrence
Venita Cabey, Chairman of the Board of Directors, Bank of Montserrat Limited
The Bank of Montserrat says it has received official correspondence from the Bank of America stating its intention to sever its relationship with the local institution. This was reported by the Chairman of the Board of Directors Venita Cabey at the bank’s Annual General Meeting on Wednesday this week.
In February this year, a Bank of Montserrat Ltd. statement refuted receiving any notice from Bank of America that it will cease such relationships, but Premier and Minister of Finance Donaldson Romeo said at the time, “At the last JMC in December of 2015, the UK Government agreed to support the Overseas Territories in liaising with UK banks to ensure that Territories have full access to uninterrupted merchant and correspondent banking services.”
Chairman Cabey now says the notice which was received by the bank this week indicated that the US bank will sever its ties in three months’ time. She assured the bank shareholders that correspondent banking will continue after this period.
“Crown Agents Bank Ltd., our UK corresponding bank is looking into expanding their relationship with us to include the facilitation of wire transfers and other banking products,” she said, “but they have indicated they will require a period of approximately six months to complete their due diligence.”
The Chairman assured: “The process has been started and come the 24th August, God’s willing, we won’t be having any issues with correspondent banking.” She continued by reporting that the bank’s General Manager also attended a meeting in Miami with crown agents and other interested Caribbean banks and the meeting was very encouraging and we are also pursuing other banks which we will update you from time to time.”
Michael Joseph, Manager, Bank of Montserrat Limited
Aside from that news Miss Cabey had good news saying, that despite the challenges during the last reporting period the bank recorded a profit in excess of $1 million.
Cabey citing some figures relating residential home mortgages, which she says demonstrates “the bank’s strong commitment to housing development in our country,” also reported, “Our capital adequacy ratio continues to remain very strong at 26.9%, well above the regulatory requirement of 8%,” noting, “our internal target is to always keep this ratio at a minimum of 15%,” and also boasting, “our non-performing loans ratio continues to be one of the lowest amongst the banks in the OECS at 6.07%.”
