Gibraltar Approves New State-Owned Bank

By Editorial 25 December, 2013

The government of Gibraltar announced on December 16 that the Cabinet has approved the launch of a new state-owned retail bank called Gibraltar International Bank (GIB).

The bank will be subject to licensing and regulation by the Financial Services Commission and will be independently managed by banking professionals, according to the Gibraltar Funds & Investments Association (GFIA).

An announcement from the government indicated that GIB intends to offer a full range of banking services to the local community when it becomes operational in the third quarter of 2014, as well as offering itself as an Alternative Investment Fund Managers Directive (AIFMD)-compliant depository to the funds sector.

James Lasry, Chairman of the GFIA, welcomed the news, saying: "We are excited by the prospect of adding GIB as an additional professionally-run credit institution to our existing array of banks in Gibraltar. GIB can present yet another banking alternative to the local and international fund and investment community."

"We are delighted with the Government's timing on this project as it comes at a time of the implementation of AIFMD, a new law creating a harmonized regulatory structure for alternative investment fund management across the EU.

"This is no doubt a further indication of HM Government of Gibraltar's commitment to the funds and investment industries."

Meanwhile, a spokesman for the Chamber of Commerce said: "The Chamber believes that this initiative by the Government is something which will boost the current banking offering and has the advantage of being home grown so that it can be moulded to suit Gibraltar's business and individual customers' needs. Such needs do not always sit well with those of mighty global financial institutions."

The Gibraltar Federation of Small Businesses (GFSB) also expressed approval, saying: "It was extremely important that an alternative to Barclays Bank was found, once it was announced by Barclays Bank that they were leaving Gibraltar. Ease of access to proper banking facilities is fundamental not only to existing businesses but also for business start-ups."

Tags: Investment | Business | Gibraltar | Law | Banking | Licensing | Professionals | Regulation | Retail | Alternative Investment | Services | Expats | Investment | Invest | Investment |


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