The Consortium of Eastern Caribbean banks obtains approval for the acquisition of CIBC FirstCaribbean banking operations in 2 OECS territories.
On 12 October 2021, the Consortium of banks signed a definitive agreement to acquire the branches and banking operations of CIBC FirstCaribbean in Dominica, Grenada, St Kitts and Nevis, and St Vincent and the Grenadines.
Following regulatory applications to the Eastern Caribbean Central Bank (ECCB), the Consortium now further advises that on 15 July, the ECCB notified the parties of its decisions regarding the applications to acquire the branches and banking operations in St Vincent & the Grenadines and St Kitts & Nevis.
The parties continue to discuss and negotiate key aspects of the transaction in the proposed sale of CIBC FirstCaribbean’s assets to the Grenada Co-operative Bank Limited.
The Consortium further announces that the sale of the assets of CIBC FirstCaribbean in Dominica to the National Bank of Dominica Ltd. (NBD) will not proceed as NBD has announced a change in its strategic direction.
Commenting on the transaction, Consortium Lead, and Managing Director of The Bank of St Vincent and the Grenadines Limited, Derry Williams asserted, “We have made considerable progress having received approval of the acquisition of CIBC FirstCaribbean’s businesses in St Vincent and the Grenadines and St Kitts and Nevis. Our efforts are ongoing to complete the Grenada transaction and we support the decision made by the National Bank of Dominica Limited and CIBC FirstCaribbean in relation to the branch and operations in Dominica.”
About The Consortium
The 4 members of the Consortium are:
- The National Bank of Dominica Limited
- Grenada Co-operative Bank Limited
- St Kitts-Nevis-Anguilla National Bank Limited
- The Bank of St Vincent and the Grenadines Limited
The Consortium members are market leaders in their respective territories, which offer the full spectrum of commercial banking services and electronic channels. As at 30 June 2022, the Consortium members held an aggregate deposit base of EC$7 billion. Collectively, they have been serving the peoples of the ECCU for a combined period of over 200 years. The Consortium’s customer base includes consumers, small and middle-market businesses, large corporations, statutory bodies and Central Governments; and remain committed to helping their customers succeed.
The Consortium
This is pretty much a 360. The sale of the bank signifies a return to the original banks which served the people from day one.
CIBC and the other international banks are not about corporate social responsibility but driven by profits.
IMO, Grenada government should not have sold both banks. Instead, keep one of the banks as a way to afford Grenadians access to capital.
On the other hand, that would have been a disaster with the level corruption over the years.