| FSC shuts down TCI Bank | | Print | |
| Saturday, 10 April 2010 08:48 | |||
 TCI Bank was ordered closed for business just after 6 p.m. Friday, April 9, locking Turks and Caicos Island residents, businesses and government agencies out of their accounts until court-appointed liquidators can determine how much money is left in the country's first indigenous bank. “The FSC took the difficult decision to petition the court to close the bank so that its remaining assets could be preserved," Financial Services Commission Chairman Sandy Lightbourne said in a written statement. "Obviously, we must await the conclusions of the provisional liquidators’ work, but I am afraid that depositors must expect that they might not be able to recover all of their savings.”The Supreme Court order appointed Anthony Kikivarakis and Mark Munnings, partners of Deloitte & Touche, to determine what is left in the beleaguered bank and how much of their money customers will get back. The liquidators have been asked by the FSC to communicate as quickly as possible with account holders, staff and other creditors about the fate of their accounts. On Saturday morning, local businesses had heard the news and posted signs saying that TCIB checks would not be accepted. The FSC did not say how many customers were affected or what the losses might be. But the bank's web site claims that 40 percent of the bank's shares are owned by TCI Belongers and companies majority-owned by TCI Belongers; 30 percent by a group of Eastern Caribbean banks; 20 percent by a mixed group of Belongers and non-Belongers; and 10 percent by the TCI National Insurance Board, which controls the country's pension fund. TCIB also was one of several banks that accepted payments for the National Health Insurance Plan. The Eastern Caribbean banks listed as shareholders are ABI Bank and its subsidiary Antigua Overseas Bank, Bank of Nevis, Caribbean Commercial Bank (Anguilla), Grenada Cooperative Bank, National Bank of Anguilla, National Bank of Dominica and St. Kitts Nevis Anguilla National Bank. However, it was unclear if the information on the web site is accurate and up to date. The bank, which opened its doors in 2005, had four branches, but it closed its Regent Village branch in February and its North Caicos branch in March, blaming pressures from the global economic crisis. The FSC said TCIB suffered a number of significant withdrawals of funds which left the bank unable to operate normally and meet its obligations on a timely basis. The court was asked to intervene when it became clear that the bank's board couldn't get the additional financial support to keep it going. “It is extremely sad that we have had to take this serious step and seek to close down TCI Bank, the country’s only indigenous bank," Lightbourne said. "The bank’s position as a new and stand-alone operation has left it very vulnerable to the current global economic downturn. The FSC had been working closely with the bank’s current board and management to find a solution to the difficulties, and some progress was being made. But regrettably it seems that in recent weeks the bank suffered a growing loss of confidence on the part of some of its important depositors. While efforts were made to find new investors, regrettably none was forthcoming in the time available." Those affected can contact the liquidators at 941-7504 during office hours. The FSC said that a web site with more information will be available soon at www.tcibpliquidation.com.
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