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FSC shuts down TCI Bank PDF  | Print |  E-mail
Friday, 09 April 2010 17:23

The shocking news came at 6 p.m. Friday, April 9 -- the Financial Services Commission announced an order to close the Turks and Caicos Islands Bank and appoint a provisional liquidator.

This means that for the time being at least TCIB will be closed and account holders will not have access to their funds.

“The FSC took the difficult decision to petition the court to close the bank so that its remaining assets could be preserved," said FSC Chairman Sandy Lightbourne. "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, as liquidators for TCIB.

The FSC said in their statement that it was forced to take this action after the bank 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 FSC said they asked the court to intervene only once it became clear that the Board of TCI Bank was unable to obtain the additional financial support necessary for the bank to continue to trade.

"In these sad circumstances, the only solution was to seek a liquidation in order to safeguard the remaining assets and to ensure their fair distribution to creditors," the FSC said in a statement.

The provisional liquidators have been charged by the court to quickly protect the assets of TCIB and explore all avenues available to rescue it. The FSC said it has asked the liquidators to move as quickly as possible in communicating guidance to account holders, staff and other creditors in an effort to minimize the inevitable uncertainty that they now face.

“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. A web site with more information will shortly be available at www.tcibpliquidation.com

 

 

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