Scotiabank’s agreement to sell its operations here to Republic Bank of Trinidad provides the best long-term solution for customers in Guyana and the two financial entities will seek to provide a smooth transition for customers and employees, a senior Scotiabank official has said.
“We are pleased to have come to this agreement with Republic Financial Holdings Limited (RFHL) – a leading financial institution based in Trinidad & Tobago and with operations across the Caribbean and Ghana. RFHL is committed to investing in and growing the business and delivering enhanced financial products and services that best serve our customers’ needs,” Scotiabank’s Senior Vice President – South and East Caribbean, Stephen Bagnarol said in a statement.
He observed that the agreement with RFHL is subject to regulatory approval and customary closing conditions. Until these are obtained and conditions met and the transactions close, all Scotiabank operations in Guyana will continue as usual. There will be no changes to accounts, and products and services remain the same at this time, he said.
Bagnarol emphasised that they are confident that the agreement provides the best long-term solution for customers in Guyana. Scotiabank and RFHL will work together to provide the smoothest transition for customers and employees, he said.
“We are delighted that, as part of this transaction, all impacted Scotiabank employees will join RFHL,” he said.
Last month, Canada’s Bank of Nova Scotia announced that it had struck a deal to sell a string of its Caribbean branches, including Guyana’s, to Republic Bank.
Following the announcement, the Ministry of Finance here said the deal raised a number of issues for the local banking sector and for the public, which the Ministry, the Bank of Guyana and government will need to carefully consider. Among the issues it raised was that Republic Bank (Guyana) Limited currently holds 35.4% of the banking systems assets and 36.8% of deposits and the acquisition of Scotiabank’s operations here will up this to 51% of both assets and deposits. The ministry said that this raises concerns about an over-concentration of banking services, market domination and the ‘too big to fail’ risks.
The Ministry warned that any such acquisition would have to comply with the Financial Institutions Act and receive the blessings of the Bank of Guyana.
Republic Bank has denied that it would control up to 51% of Guyana’s banking assets should its acquisition of Scotiabank’s banking operations here go ahead. “The combined Republic and Scotia entity would not account for much more than 33% of the financial system assets in Guyana,” Michelle Palmer-Keizer, General Manager, Group Marketing and Communications, for the Trinidad and Tobago-owned Republic Bank had said in response to questions from the Sunday Stabroek.
Bagnarol’s statement said that customers will be kept informed as the transaction progresses and any further questions regarding the change, can be directed to Scotiabank’s Contact Centre at (592) 223-HELP (4357).
