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MF confirms VINO story on concerns of survivability of NBVI!
In a statement from the Ministry of Finance (MF) dated the same day as our newsroom’s accurate story, Government confirmed that “it is indeed fact that the Financial Services Commission did have some concerns in respect to the size of the Non-performing Loan Portfolio of the bank.”
They went on to claim that “these concerns were addressed immediately by the Bank in consultation with Central Government and the Financial Services commission (FSC) itself.”
What has been addressed?
However, the MF have not provide any evidence as to how this was done and when, while reports from our senior sources close to the situation confirm that many of the issues are allegedly still outstanding.
The MF statement also claimed that “the National Bank of the Virgin Islands has thus far demonstrated a proactive and firm commitment to addressing any concerns voiced by the Commission, and has been fully supported and facilitated by Central Government in doing so. We are pleased with the significant progress that the bank has made in improving its operations and regulatory standards in the last few years, and remain confident in its sustainability, strength and continued relevance to the BVI community into the future.”
Our newsroom reported that in one of many letters from the FSC, the regulator stated, “the Financial Services Commission has been monitoring the NPL of the Bank, which when expressed as a ratio (non-performing loans/total capital), is in excess of 100% of total capital. Furthermore, the non-performing loans are currently in excess of 20%. The BVI banking sector has historically averaged around 3%, so clearly, the Bank is well in excess of the historical average.”
Fix your business or else-FSC
The FSC urged the bank to address the matters with some priority and also gave some stern recommendations as to how the matters will be addressed by the Regulators.
They include, A. Asking the Bank to voluntarily suspend the granting of new loans until the NPL is reduced, B. The FSC could take enforcement action and prohibit the Bank from granting new loans, C. The FSC could allow the Shareholder to voluntarily transfer the non-performing loans to a special purpose vehicle to be managed separately from the Bank.
Another recommendation by the FSC on the poor performance of the NBVI's loan portfolio was to take “enforcement action to suspend or revoke the Bank’s licence because the Bank is likely to pose significant regulatory risk to the banking system and the Bank may not be operating in the public’s interest.”
See link to previous story:
http://www.virginislandsnewsonline.com/en/news/serious-concerns-raised-by-fsc-about-survival-of-nbvi
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22 Responses to “MF confirms VINO story on concerns of survivability of NBVI!”
National Bank Of Paradise haaa.. dont make me laugh!!
But the FSC turned its usual blind I and now wait until things are in a crisis mode. They talk about bad loans what about how they are handled are customers who cant get their rent collected or their monies owed collected from Gov because of this bad economy giving payment plans. The economy is so bad that they even cant get the houses sell on auctions.
To run a bank as a board or daily operations you need people who are compassionate and knowledgeable of what they are doing and who cant put aside personal grudges to do what is right for the good of the bank and the economy. The banks who created this world economic mess are covering their backsides with these fees and making the economy and the people to suffer.
The Fsc has allowed the financial services to dwindle by taking a late or no stance on issues and now they need to come clean to the people are these issues for the national bank actually address. For they telling the truth might allow the poor man to save what little he has left.
they are doing something, in the publics eye. It's perfectly ok for the managers of a bank here to want to know
all about someone's family or what their father left them and their relatives when he died. THAT is ok in the BVI.
FSC is cool, cover up for the really bad ones and make a big to-do about the so-so bad ones. God is proud of you.