Republic Bank “disappointed” plans to buy Scotiabank in Guyana not approved

Republic Bank Chief Executive Officer (CEO) Nigel Baptiste has expressed disappointment over the fact that the financial institution’s plans to acquire Scotiabank’s assets in Guyana were not approved by authorities.

“While this development is disappointing, we do not dwell on disappointment,” he is quoted as saying in an article published by Trinidadian media entity Newsday.
“As a group, we remain fully engaged and committed to supporting the nation of Guyana through our operations there, as well as toward ensuring the success of all activities for which we have received the requisite regulatory approvals, under the proposed BNS acquisition,” he further stated.
Guyana’s Central Bank recently denied Republic Bank Guyana’s application to buy out the Bank of Nova Scotia’s operations in Guyana.
Last November, Republic Bank had announced its interest in acquiring the Canadian multinational bank’s operations in several countries, including Anguilla, Antigua and Barbuda, Dominica, Grenada, Guyana, St Kitts and Nevis, St Lucia, St Maarten, and St Vincent and the Grenadines.
This is following Scotiabank’s decision to leave these Caribbean nations. At the time, the local financial authorities were not informed of the decision.
Finance Minister Winston Jordan had expressed concerns that the sale might result in Republic Bank owning more than 50 per cent of the total banking assets in Guyana.
In denying the application, Central Bank Governor, Dr Gobind Ganga said decision makers took into consideration concerns about concentration and competition which would have negative impacts on the country’s financial system.
The Finance Ministry had revealed that Republic Bank’s share of the banking system assets in Guyana stood at 35.4 per cent and its deposits, 36.8 per cent. The purchase of Scotiabank’s operations would have seen that figure grow to 51 per cent.
Nonetheless, the Republic Bank CEO said: “We appreciate the Bank of Guyana’s acknowledgement of the value of our longstanding role in the development of Guyana’s financial landscape and our continued contribution to the financial sector.”