fp Turks and Caicos

TCI Bank was ordered closed for business just after 6 p.m. Friday, April 9, locking Turks and Caicos Island residents, businesses and government agencies out of their accounts until court-appointed liquidators can determine how much money is left in the country's first indigenous bank.

The Supreme Court order appointed Anthony Kikivarakis and Mark Munnings, partners of Deloitte & Touche, to determine what is left in the beleaguered bank and how much of their money customers will get back. The liquidators have been asked by the FSC to communicate as quickly as possible with account holders, staff and other creditors about the fate of their accounts.

On Saturday morning, local businesses had heard the news and posted signs saying that TCIB checks would not be accepted.

His Excellency the Gov. Gordon Wetherell on Saturday asked businesses and other banks to "look sympathetically" to people hit by the closure, and he did the same - delaying a pending pay cut for government employees who use TCIB. 

"I have asked the Ministry of Finance to bring forward to next week the payment of salaries and wages to those individuals and to exclude their April pay from the recently announced 10 percent cut," the governor said.

The TCI has no bank protection system such as the deposit insurance facilities in the United States, but Wetherell said it was in the planning stages and now has been moved to the top of the list.

"Given the gravity of this matter I have asked the FSC to engage in discussions on depositor protection with the banks licensed in this country, at the beginning of next week," Wetherell said. "I am also today writing to the banks and their regional head offices to explain why the government is taking these steps and to ask that they cooperate with the FSC."  

"Schemes of this kind, which provide depositor protection for all banks’ individual resident account holders up to defined limits, are common practice internationally," he said. "They are funded by the banks licensed to operate within those countries which have established these schemes. They are not funded out of the public purse."

The governor said he would quickly take the matter before the Consultative Forum and Advisory Council, two bodies which advise Wetherell and the interim government.

TCIB also was one of several banks that accepted payments for the National Health Insurance Plan.

The Eastern Caribbean banks listed as shareholders are ABI Bank and its subsidiary Antigua Overseas Bank, Bank of Nevis, Caribbean Commercial Bank (Anguilla), Grenada Cooperative Bank, National Bank of Anguilla, National Bank of Dominica and St. Kitts Nevis Anguilla National Bank. However, it was unclear if the information on the web site is accurate and up to date. 

The bank, which opened its doors in 2005, had four branches, but it closed its Regent Village branch in February and its North Caicos branch in March, blaming pressures from the global economic crisis.

The FSC said TCIB 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 court was asked to intervene when it became clear that the bank's board couldn't get the additional financial support to keep it going.

“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."

Customers and shareholders affected by the closure can contact the liquidators at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or 649-941-7500. For more information, visit the Web site www.tcibpliquidation.com.