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Banking
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Friday, 22 July 2011 21:25
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By Everton Barnes
Antigua St John's - The Eastern Caribbean Central Bank (ECCB) took control of the ABI Bank on Friday, after the institution was unable to meet statutory and other obligations.
In making the announcement, Prime Minister Baldwin Spencer appealed to the nation for patience, faith, and support as the government works along with the ECCB to help resolve the issues involved.
“The Government of Antigua and Barbuda, the Monetary Council and the Central Bank have been closely monitoring the situation," Spencer announced in a national address. "Accordingly, after careful consultation with the board of directors of ABI Bank and the banking community in the Currency Union, it was agreed that in order to ensure the continuity of banking operations, that the ECCB should assume control."
In taking the decision, he said the government was mindful of the continuing impact of the global recession on the economies in the Eastern Caribbean Currency Union, and in particular, Antigua and Barbuda, the BAICO/CLICO fallout, and the need to ensure the financial stability of the ECCU.
The prime minister said steps will be taken to protect the interests of both depositors and creditors, and pointed to the ECCB’s successful intervention at Bank of Antigua, now the Eastern Caribbean Amalgamated Bank.
“I therefore appeal to all depositors and creditors to bear with us while we sort out the problems with which the ABI Bank is now faced,” Spencer said.
According to the prime minister, the government is committed to preserving the safety and soundness of the banking sector. He expressed confidence that the steps taken by the government and the ECCB will serve to maintain confidence in the bank and the financial sector as a whole.
Spencer also announced that he had held discussions with both the opposition leader, Lester Bird, and ALP Chairman Gaston Browne, and received "broad support for the intervention in returning normalcy and stability at ABI Bank and in the banking system generally".
ECCB Governor Sir K Dwight Venner also addressed the nation on the issue, noting that Central Bank staff will be involved in the day-to-day affairs of the bank. “With the assumption of control, the affairs of the bank will be carried out by Central Bank staff, current ABI Bank staff, with the support of a dedicated group of bank specialists who together would give their undivided attention to the restoration of normality at the ABI Bank. We ask all depositors and creditors to bear with us while we address the problems with which the ABI bank is now faced,” Sir Dwight announced.
He also appealed for calm and good judgment as the team works to restore stability. “Let me remind you that through our intervention of the Bank of Antigua, no persons lost their deposits and the institution which replaced it is now functioning normally. On that occasion, I pointed out that 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. If demands for money are made by everyone at the same time it will be impossible to meet them all,” he added.
Sir Dwight gave assurances that normal operations will continue at the ABI Bank at all its branches and that no disruption of activities is anticipated.
Also addressing the issue was Finance and Economy Minister Harold Lovell, who joined in appealing for calm and confidence during this period of challenge at the ABI Bank.
56 Comments In This Article
Demand for release of Audited Financials
This is a demand going out to the Board of Directors of the ABI Bank Ltd. You are hereby ordered by Public Order Act to release the Audited Financial Statement of the ABI Bank Ltd forthwith for public review as required by law. Any failure to do so will result in public action being taken against you in the interest of the General Public at large and/or the Investors/Share holders and depositors.
Public Inquiry Comm.
Smart One
..
tenman
@ Tenman. apologies accepted
Smart One
Smart One - apologies
..
tenman
ABIB Employee
Be careful! The net you try to set for others may turn out to be the very net you fall in!
Confident Onlooker
@Maestro
ABI Bank Employee
@ABI employee
Maestro
@FNPSR
ABI Bank Employee
re: ABI Bank Employee
fnpsr
@ Maestro
ABI Bank Employee
Gate keepers
Maestro
@John French-let us get it right
And, if you have been looking at my posts, you will know, I am all for integration, especially, with the OECS! John, as much as some would want to label me as "Red Ants," "Labourites," "Comrade," or any other names, I couldn't careless because I always put country over party! Respect to you as well.
Dig It
RE: ECCB Takes Control At ABI Bank
Rubbing alcohol
Monday Morning Antiguans Do What You Have To Do
Antiguan & Barbudans do not let the politicians and talk show hosts convince you that your money tin ABI Bank is in safehands.
The IMF protects the foreign bank loans, but the Antiguan depositors at this greedy bank will be left to fend for themselves.
IPP ON UPP
ABI employee
Maestro
Taking all my money
ABI Bank Employee
Time will tell #6
Smart One
Time will tell #5
Smart One
Time will tell #5
Smart One
Time will tell #4
Smart One
Time will tell #3
Smart One
Time will tell #2
Smart One
Time will tell #1
Smart One
@Skywell
Antiguan Woman
When Lord When???
Antiguan Woman
RE: ECCB Takes Control At ABI Bank
Audrey
@Maestro
Reality
@ P.L.S. Abbott - Revelations: Expose the Hypocrites
John French II
@ Skeyewill & Dig It
www.eccb-centralbank.org/about/who-we-are.asp Respect.
John French II
@woods
Perplexed
Opportunity for ECAB
@Tenman
Do you believe the ex general manager now with the government had a hand in this?
@Beauty
When persons who are extremely close to the Government hold influential positions in private organizations and if those persons allow themselves to be guided by their political friends you can see how Government will be apportioned some or most of the blame. Fortunately or unfortunately recent events has place the burden of responsibility on the gate keeper (including the BOARD) ala Mr Jarvis of MBS fame.
I n the interest of public confidence I doubt anything close to an inquiry would take place but it would be very interesting to find out what really went wrong.
Maestro
RE: ECCB Takes Control At ABI Bank
Reality
Good point 'Audrey'''''
There failure is rewarded with big Chairmanships at APUA,where they are bankrupting these National Institutions with no accountability ,going on a bencorp/chinese spending spree.Then over taxing the people at IRD/Customs with ABI'S former GM in charge!!!!!!!!! !!.....Can someone look at the amount of social security funds sir xxxxxx placed at abib??????????? ?
This is ONLY the tip of the ICEBERG'''''''' '
P.L.S Abbott
@Skyewill
Dig It
RE: ECCB Takes Control At ABI Bank
I think from this Antigua should be learning a lesson about composition of Boards. Sometimes I look at how a Board is comprised and I wonder how the people are able to make decisions and based on what knowledge since they possess no knowledge of the type of business. We need to stop comprising Boards of friends and just popular people but put persons with knowledge of the industry which the company operates who can make sound decisions. Also, I hope this is also a wake up call to owners to keep stock of their investments, look at statements, get advice, ask the Board questions when things dont look right. IT IS YOUR RIGHT.
By the way people, this takeover has been in the pipeline 4 - 5 yrs now.
Beauty
woods
..
tenman
RE: ECCB Takes Control At ABI Bank
Audrey
Correction
Dig It
PM-we bear with you long enough pt 1
Dig It
@ Antigua
BEEF
PM-we bear with you long enough pt 1
Dig It
RE: ECCB Takes Control At ABI Bank
BEEF
Bare us
P Apple
@ hot mess & PEACE
Skyewill
RE: ECCB Takes Control At ABI Bank
Seriously
RE: ECCB Takes Control At ABI Bank
Antigua
All bloggers
Then most recently there was the ill advised loan of over 100 MILLION to the Government to cover the expansion of the parking apron and extension of the runway at V.C. Bird International of which not one penny has been recovered by the bank. Now I have read all of the blogs here and not one of you are coming close to the real issue that plagued this institution. Its shareholders and executive were just too close to the Government, they were without real vision and were just greedy. End of story.
What is Stanford's percentage of share holding? If this bank falls another indigenous institution can/will fall since they also have major shares in ABI.
woods
noticed
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tenman
Fed up
hot mess
Smart One
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tenman
Living In The IMF's NEST - Have Mercy Pon Us. PT22
History will Judge Them Harshly. They have all been as Fanon said, "Sham from Beginning to End". I also went against the grain and stated that had it not been for the ECCB Antigua & Barbuda and Dominica would have been totally Bankrupt and Destitute inspite of the rabble rousing of Senator Red. Sir Dwight Vener must be commended.
Heaven Help The Nation Of Antigua & Barbuda - Redonda?
John French II
Living In The IMF's NEST - Have Mercy Pon Us. PT1
John French II
When you nuh know you just nuh know #2
Smart One
When you nuh know you just nuh know #1
Smart One
What ?
Business woman
L. (CHOKO) WESTERN TOLD US IT WOULD HAPPEN
Between now and Sunday Mr L (CHOKO) Western should be allowed a stint on Radio Z D K,on this matter.
PEACE
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