On Tuesday October 12, 2021, a Consortium of leading Banks in the Eastern Caribbean Currency Union announced that it has entered into 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.
The agreement executed on 12 October 2021 is subject to regulatory approval and customary closing
conditions.
Commenting on the transaction, Consortium Lead, and Managing Director of The Bank of St. Vincent
and the Grenadines Limited, Derry Williams asserted, “This acquisition by the Consortium represents a
significant development in the evolution of the Banking System of the ECCU. Once approved by the
regulators, we are very confident that it will lay the basis for further enhanced value creation in these
economies and greater prosperity for our society. ”
The four members of the Consortium are:
1. The National Bank of Dominica Limited;
2. Grenada Co-operative Bank Limited;
3. St. Kitts-Nevis-Anguilla National Bank Limited; and,
4. The Bank of St. Vincent and the Grenadines Limited (Agent of the Consortium)
“The four indigenous banks are an excellent fit for the bank’s St. Vincent, Grenada, Dominica, and St.
Kitts business, given their knowledge of the local markets match with our product offerings and client
base and a strong market positioning. They bring a depth of local knowledge to the market and the
needs of our clients there…” said CIBC FirstCaribbean’s Chief Executive Officer, Colette Delaney
The four OECS-based banks are market leaders in their respective territories, which offer the full spectrum of commercial banking services and electronic channels. They are supervised by the Eastern Caribbean Central Bank and require its regulatory approval. Collectively, they have been serving the peoples of the ECCU for a combined period of over 200 years. Their customer base includes consumers, small and middle-market businesses, large corporations, statutory bodies and central governments; and remain committed to helping their customers achieve success.
This acquisition expands the Consortium’s loan base by more than XCD 600 million, net, the deposit
portfolio by XCD1.5b; and provides the additional scale to better service the Consortium’s respective
communities and contribute to the region’s economic and social advancement.
The Consortium looks forward to working with CIBC FirstCaribbean to finalize the transaction over the
coming months with both working diligently to ensure the transition is seamless for all stakeholders.
Until regulatory approvals are obtained and the transaction closes, operations at all institutions will
continue as they currently do.
The Consortium members are committed to recruiting staff of CIBCFirstCaribbean, as required, to
maintain and even improve the level and quality of service that CIBCFirstCaribbean customers are
accustomed to.
The Consortium is being advised by Deloitte & Touche in Barbados (Lead Advisor) led by Mr. Raymond
Haynes, Director, Financial Advisory; and Lex Caribbean (Lead Legal Advisor) led by Mrs. Mary Mahabir, Senior Partner.
ABOUT THE CONSORTIUM
The Consortium members are market leaders in their respective territories, which offer the full spectrum
of commercial banking services and electronic channels. As at June 30, 2021, the Consortium members
held an aggregate deposit base of $6.4b representing a 53% market share in the their combined
markets. 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 in helping their
customer succeed.
I’m going back to my mattress Bank.
I dont like the idea of just two banks…well lets say three…credit union is even worse than them…they want to send you for your great grand parents papers….it appears just now is only credit union and national Bank…will remain…but let us not be fooled when it was only one phone company here…they sucked us dried until they reluctantly open up the market…the competition is extremely good for progress….the policy makers…take note….
My take on this is that CIBC has an excellent service online which NBD does not have. Wire transfer online. I do hope that this service remains. So all the consortium or what please remember that members of NBD who could not do those transactions at your bank would greatly appreciate that you take note. That is why we opened CIBC and this CIBCFCB is recognized as an international Company with their bankcard so whilst you want to increase your assets, please ensure, what we can do at CIBCFCIB we will continue to do so. That’s all! Some of us are not satisfied with some of your transactions at NBD. Take note! I know what I am speaking about. This is not hearsay! OK
Soon NBD will be the only bank in Dominica and as history has shown a monopoly is only good for the persons who own the monopoly.. Ask Domlec
Nice. It’s now time to open a CIBC account. Hope all goes well, and banking become a more prosperous venture, with this added confidence of implemented regional banking standard.
This is bad news for the people of Dominica. The activities of CIBC First Caribbean will be absorbed by NDB leaving the public with only two retail banks, Republic and NBD, which is in fact controlled by the Dominica Finance minister through his government’s direct shareholding plus the one held by Social security, headed by him. Hobson choice rellen .Try to use the credit union instead if you do not trust NBD or Republic. Not to mention the people at the Trini bank that I expect will lose their jobs.
Direct Regional scrutiny will solve that. Even though nbd adheres, it will add fair competition to banking when CIBC remains independent, and Cedit Unions remains Credit Unions. Policy usually is porous when there remains one Policy driver.
Another of your 5 minutes news bite as usual. Why do you keep putting politics and Skerrit in your nonsense. Why don’t you just say it is a good idea to see all foreign banks nationalized today in the Eastern Caribbean islands. An end to all profits going to foreign countries like Royal Bank of Canada profits going back to Canada. Keep fighting for Lennox Linton but, your dream will never come true.
So it’s ok then for Skerrit’s Kempinski, to get duty free imports and a tax free holiday and allowed to send their profits anywhere overseas without restrictions. What is that doing for our economy, tell using you so smart
and concerned.