MINISTER of Finance, Winston Jordan, has stated that no moves have been made as yet by Republic Bank to take over the operations of Scotia Bank in Guyana and, while the government is not in favour of the take-over, it will allow the Bank of Guyana to complete its assessment.

Minister Jordan relayed the same to the media earlier in the week stating. “As far as I’m aware, [there has been] no particular movement on that has as yet because the government hasn’t reported any substantial change or development since we last spoke and we last spoke maybe about three [or] four weeks ago,” Jordan said.

Earlier in September, the Eastern Caribbean Central Bank (ECCB), in consultation with the ECCB Monetary Council, had approved the application for the transfer of the assets and liabilities of the Bank of Nova Scotia to the Republic Financial Holding Limited (RFHL) in several regional territories.

The Trinidad and Tobago-based bank received the stamp of approval to take control of the operations of Scotiabank in Anguilla, the Commonwealth of Dominica, Grenada, St Kitts and Nevis, Saint Lucia and St Vincent and the Grenadines, pursuant to Section 43 of the Banking Act.

Since in 2018, Scotia Bank had expressed interest in the move as a means which “provides the best long-term solution for our customers”.

At the time, Minister Jordan had stated that the agreement raises a number of issues for the banking sector in Guyana and for the public which the Finance Ministry, the Bank of Guyana and the Government of Guyana will need to carefully consider.

“The Scotiabank decision is made when Guyana’s economy is on the cusp of financial transformation with the onset of massive new oil and gas sector raises concerns and is regretted. Among other concerns is the effect on competition and the potential for Republic Bank to have too much influence on the pricing of banking products and rates, issues related to correspondent banking options and loss of jobs as a result of Republic Bank consolidating branches were other concerns,” he said.

In a statement he expressed that Republic Bank currently holds 35.4 per cent of the banking systems assets and 36.8 per cent of deposits and the acquisition which adds up this to 51 per cent of both assets and deposits.

On Monday, Minister Jordan reiterated that the government’s views on the same have not change.

“I think we made our views very clear earlier this year that we’re not in favor of the agreement. We said the reasons why we’re not in favor of the agreement; that hasn’t changed at the level of the Cabinet. But I think the bank is doing what it has to do and when it’s finished is has to pass it over to me so I could take it to Cabinet,” the finance minister said.

“I will just let the Bank of Guyana do its work and when it’s completed it will pass it over.”

The ministry has pointed to the Financial Institutions Act (FIA), which has clear stipulations regarding ‘acquisition of control’ and requires approval by the Bank of Guyana following the submission of an application and due diligence being conducted.

The FIA also addresses the issue of “fundamental changes” as it relates to mergers and transfer of assets or liabilities.

With this in mind, the minister reminded that the role of Scotia Bank in Guyana is not the same as that of Scotia Bank in the Eastern Caribbean.

The ministry has assured the public that it will continue to stay abreast with the matter and will act in the best interest of the citizenry.