Dec 2006 Financial News

‘We have final say on bank acquisitions’ says Central Bank

Dec 07, 2006

In light of recent reports over Canadian-owned First Caribbean International Bank seeking to obtain a significant chunk of RBTT shares, deputy Central Bank governor Joan John said yesterday the Central Bank would have the final say on any such transaction.

She was speaking after a news conference yesterday at the Central Bank’s auditorium, St Vincent Street, Port-of-Spain.

John noted that the Bank would have to strike a balance between existing market factors and amended legislation which gives the Central Bank more power.

“In 1993, we opened our markets so people can come in and go out,” she said, “At the same time the Central Bank will always be interested in ensuring there is stability in the system and taking the actions that are needed.”

Recent amendments to the Financial Institutions Act have given the Central Bank more say in matters regarding the acquisition of a local bank.

Apart from this amendment, John said the amendments also allow for regulators to share information which was not permitted due to “the confidentiality clause.”


Source:
Sherwin Long
The Trinidad Guardian
Thursday 7, December 2006

http://www.guardian.co.tt/business2.html