Citing ABI Bank’s “inadequacy of liquid assets” and its inability to meet reserve requirements, the Eastern Caribbean Central Bank announced it has assumed control of the Antigua-based bank in order to save it from collapse.
The bank — which had $1.073 billion in assets in 2008, according to the most recent annual report posted on its website — is functioning normally and no depositors have lost money, according to a July 22 statement from the ECCB’s governor, Sir Dwight Venner.
Sir Dwight said that the ECCB’s priority is to maintain financial stability in the Eastern Caribbean Currency Union and asked depositors and creditors to bear with the institution while the problems are being addressed.
“Banks are not warehouses where your money is permanently stored. The money needs to be lent out so that the bank can earn a sufficient return to pay interest to the depositors, compensate staff and earn a profit,” he said. “If demands for money are made by everyone at the same time it will be impossible to meet them all.”
See the Aug. 11, 2011 edition for full coverage.