ECCB Takes Over Two Banks In Anguilla

By Editorial 28 August, 2013

The Eastern Caribbean Central Bank (ECCB) took over Anguilla's two largest banks on August 12, 2013, after the two banks exceeded the central bank's limits on non-performing loans.

For the next six months the ECCB will fully control the Caribbean Commercial Bank (Anguilla) Limited (CCB) and the National Bank of Anguilla Limited (NBA).

On August 15 Anguilla's Chief Minister, Hubert Hughes, issued a statement on the takeover, in which he said that the CCB and the NBA account for 76.7 percent of the total assets of Anguilla's banking sector.

"The global economic and financial crisis has hit the country’s major sectors, tourism and construction and this has had a significant impact on the performance of loans to these sectors. The banks have been facing a number of challenges including: poor earnings performance, declining asset quality, high levels of non-performing loans, weak corporate governance and the inability of their managements to reverse the situation," the minister said.

He continued: "The organs of the ECCB, the Monetary Council and the Ministerial Sub-committee on Banking, after due consideration and representations by the Government of Anguilla, which is a member of the Monetary Council and the Ministerial Sub-committee, decided to invoke Part IIA, Article 5B of the ECCB Agreement Act 1983.

"This step has not been taken lightly and extensive discussions have taken place with the Foreign and Commonwealth Office of the British Government and they too have concurred with this action.

"With the ECCB’s assumption of control, the management of the CCB and the NBA will be undertaken by teams of seasoned professionals from the ECCB, IMF and the World Bank as well as regional banking experts. The daily operations of the banks will be carried out by the current staff of the respective banks under the supervision and close monitoring of the ECCB with a change only in senior management and the Board. Under the guidance of the ECCB and the other institutions work will be undertaken to restore these banks to a state of normalcy."

Tags: Expatriates | Investment | Banking | Corporate Governance | Professionals | Anguilla |


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