Citing concerns that two domestic Anguillan banks didn’t have adequate capital, the Eastern Caribbean Central Bank assumed control of the institutions’ operations last week.
On Aug. 12, the ECCB took over the operations of the Caribbean Commercial Bank [Anguilla] and the National Bank of Anguilla Limited. The two banks possess over 77 percent of the total assets in the territory’s banking sector, according to a statement from Anguillan Chief Minister Hubert Hughes.
Mr. Hughes added that because the territory’s economy had been hit hard in recent years, particularly in the construction and tourism sectors, the banks have been struggling.
“The banks have been facing a number of challenges, including poor earnings performance, declining asset quality, high levels of non-performing loans, weak corporate governance and the inability of their managements to reverse the situation,” Mr. Hughes said.
He added that officials from the United Kingdom’s Foreign and Commonwealth Office have been in discussions with Anguillan and ECCB officials and agree that the action is needed. Teams from the ECCB, the International Monetary Fund and the World Bank will be brought in to help manage the two banks, he added.
See the Aug. 22, 2013 edition for full coverage.
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