This is needed if it intends to take-over Scotiabank Guyana operations which it is buying

Trinidad’s First Citizens Bank (FCB) is yet to apply for a banking license to operate in Guyana given its intended purchase of Scotiabank’s local operations there.

That’s the word from the Bank of Guyana, which regulates the local banking sector in the South American peninsula. In a statement released to the media last week, the Bank of Guyana declared that, “FCB does not have a license to operate in Guyana. FCB has not submitted an application.”

According to the Bank of Guyana, “an application must be made in keeping with the requirements of the Financial Institutions Act 1995 to the Bank of Guyana to acquire control of a bank (in this case the Bank of Nova Scotia) operating in Guyana.” The Bank of Guyana points out that Scotiabank Guyana has entered into a purchase and sale agreement with FCB without informing it as the country’s banking regulator.

The Central Bank of Guyana had previously blocked the sale of Scotiabank Guyana to another Trinidad and Tobago Bank, Republic Bank Limited in September 2019. As a result, that sale fell through.

However, should this sale with FCB go through, First Citizens would add to its international operations, which currently are established in Barbados, Costa Rica, St. Lucia, St. Vincent and the Grenadines, and Trinidad and Tobago.

Notice of sale published in Trinidad’s Guardian newspaper

FCB had published a notice in the Trinidad Guardian newspaper on its decision to enter into a purchase and sale agreement with Scotiabank Guyana to acquire its local operations. In a press release, Scotiabank indicated that, “this transaction supports its strategic decision to focus on operations across its footprint where it can achieve greater scale and deliver the highest value for customers.”

Scotiabank’s current operations in Guyana comprise four branches with a staff compliment of 180 employees. The release stated that following the closing of the deal all employees will continue to support the business.

The press release stated that, “until regulatory approvals are obtained and the transaction closes, Scotiabank’s operations in Guyana will continue as usual. First Citizens and Scotiabank will work together to facilitate a smooth transition for the business.”

Guyana’s Finance Minister takes issue with how the sale is being handled

However, Finance Minister Dr Ashni Singh has taken issue with the manner in which the sale has been proceeding declaring that, “Guyana’s regulatory process has been blindsided and ignored. We consider it premature to announce a transaction of this nature particularly given that the regulatory process to consider. The request for any such transaction is yet to be initiated much less to be concluded.