26 Nov 2020
The Central Bank of Belize advises the public that its Board of Directors has granted approval for the Bank of Nova Scotia Ltd. to sell 100% of the common shares held by Scotia Caribbean Holdings Limited in Scotiabank (Belize) Ltd. (SBL) and for Caribbean Investment Holdings Limited (CIHL) to purchase SBL's shares.
The Board was guided in its decision by the primary objectives as defined by the Domestic Banks & Financial Institutions Act (DBFIA) sections 6 (2) and 6 (3), particularly:
1. Maintaining confidence in and promoting the safety and soundness of the financial system in Belize;
2. Promoting prudent and fair banking and financial practices; and
3. Supervising licensees to determine whether they are financially sound.
Scotiabank (Belize) Ltd. and Belize Bank Limited are bound by a Transition Services Agreement, which will ensure a smooth transition post acquisition of the shares.
During the transition and for an interim period of 12 to18 months, Scotiabank (Belize) Ltd. will operate under a changed name - Belize Bank Corporation Limited.
The decision of the shareholders for the sale of Scotiabank (Belize) Ltd. was not influenced by any conditions specific to Belize nor was it prompted by any action on the part of the Regulator. Rather, the move represents Bank of Nova Scotia's (Corporate) strategy of exiting what it considers to be non-core operations. This strategy extends to reengineering its operations in the various Latin American and Caribbean territories.
Pursuant to the DBFIA, the Central Bank conducted a comprehensive assessment of the proposed application, inclusive of the benefits and potential risks and vulnerabilities, to ensure that it will not be detrimental to the interest of depositors and customers, and the stability of the financial system.
The Central Bank reiterates its unwavering commitment to the continued effective oversight of the Belize financial system and continues to collaborate with all financial sector stakeholders to optimize the banking products and services available to the public including the business community
Central Bank of Belize
1 Gabourel Lane
Belize City, Belize
Central Bank of Belize published this content on 26 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 November 2020 22:14:01 UTC