Republic Bank ‘disappointed’ plans to buy Scotia Bank not approved

Republic Bank Thursday said it is disappointed that its application for the purchase of the Bank of Nova Scotia’s (BNS) here has been denied by the Bank of Guyana.

However, the company said it will not “dwell on disappointment.”

“As a group, we remain fully engaged and committed to supporting the nation of Guyana through our operations there, as well as toward ensuring the success of all activities for which we have received the requisite regulatory approvals, under the proposed BNS acquisition,” said Nigel Baptiste, President and CEO of Republic Financial Holdings Limited (RFHL).

“We appreciate the Bank of Guyana’s acknowledgement of the value of our longstanding role in the development of Guyana’s financial landscape and our continued contribution to the financial sector,” he added.

When the takeover plans were announced, the Ministry of Finance here had expressed reluctance, saying Republic Bank holds 35.4 per cent of the banking systems assets and 36.8 per cent of deposits in Guyana and the acquisition of Scotiabank would up this to 51 per cent of both assets and deposits.

“This too will have an impact on competition and the potential for Republic Bank to have too much influence on pricing of banking products and rates.

“The sale will also have an impact on issues related to correspondent banking options and the loss of jobs with Republic Bank likely to consolidate branches,” the Ministry of Finance had stated.