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MF confirms VINO story on concerns of survivability of NBVI!

- Claims matters of Non-performing Loan Portfolio have been addressed
Government has confirmed in a statement our first and accurate story that the Financial Services Commission had written to National Bank of the Virgin Islands and Financial Secretary Neil M. Smith (right) about concerns regarding the performance of the state-owned bank. Photo: VINO/File
The Financial Services Commission (FSC) had urged NBVI to fix its problems or risk intervention and even a revoking of its license. Photo: VINO/File
The Financial Services Commission (FSC) had urged NBVI to fix its problems or risk intervention and even a revoking of its license. Photo: VINO/File
ROAD TOWN, Tortola, VI- It was our newsroom that again first and accurately reported in an article on October 27, 2016 that the Financial Services Commission (FSC), the state regulators, had raised serious concerns about the survival of the National Bank of the Virgin Islands (NBVI) and in particular its unsustainable Non-performing Loan Portfolio.

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:

22 Responses to “MF confirms VINO story on concerns of survivability of NBVI!”

  • ccc (28/10/2016, 09:37) Like (2) Dislike (0) Reply
    • Hmmmm (28/10/2016, 10:22) Like (6) Dislike (1) Reply
      That fancy new building they are in. Hmmm. Thought everything Rosy and nice and profitable. They always say don't judge a book or a person by the outside look And read the inside to get the true story. Hmmmm.
      • A pass person (01/11/2016, 11:31) Like (0) Dislike (0) Reply
        Hmmm well hmmm indeed them do well.lololol!!!!
        National Bank Of Paradise haaa.. dont make me laugh!!
  • Whyowhy (28/10/2016, 09:51) Like (9) Dislike (20) Reply
    Why are people wishing bad on the bank? I wonder if this is all because this is the bank that hauls a lot of people to court for non-payment.
  • hear thing (28/10/2016, 09:53) Like (26) Dislike (11) Reply
    Neil is a good man but he is working with a bad government
  • The youths will now suffer. (28/10/2016, 10:17) Like (4) Dislike (0) Reply
    A lot of the workers who have the bank in this dilemma already left. Transfer to some where else to make another mess..Some people just can't manage..They act like head teachers and Dictators You say yes, yes to them U get what you want. Even if you don't deserve it..The youths will now suffer for wrong doing of the elders... We won't be able to get loan to start nothing of our own.
  • HEH (28/10/2016, 10:43) Like (8) Dislike (0) Reply
    Fix your business or else.
  • voter (28/10/2016, 11:19) Like (14) Dislike (7) Reply
    Please remove your $$$$ from the bank people
  • mess (28/10/2016, 13:08) Like (4) Dislike (4) Reply
    The world about six yrs ago faced the worst recession in history and some believe it was actually a first degree depression with three been the worst. In addition the finances of the country some would say is been handled poorly and unfairly. But still the banks were allowed to run rampant making and increasing all sort of fees to the customers. Things they try to implement in other countries but they failed to do because it was thought to be unfair.

    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.
  • Seriously (28/10/2016, 15:34) Like (5) Dislike (1) Reply
    Loan holders need to pay them damn loan...SIMPLE!!!!!!!!!!!
  • Yes (28/10/2016, 17:09) Like (3) Dislike (0) Reply
    Yow, this is what you get when you have a dolly house government. Hopefully the parasitic oligarchy and their merry band of sycophants will be sent packing next election.
  • Cantplease (28/10/2016, 18:17) Like (1) Dislike (0) Reply
    What is the sense? Every four years they are ready to change leaders. They don't want to give people a chance. What did the elder and politicians of yore did right that that we could not be swimming in doe at this time? Why is Government renting all these buildings to the tune of 1 million a month? Why does the Govt. has so much recurrent expenditure? You can't have so much expenditure and expect to expand services and infrastructure. Our local people hating on each other with jealousy and badmindedness is another problem. We don't understand that we should be each other's keeper. We are so divided and we can't see the detriment to all this. You can't please the masses, but it is time for Government to review their spending habits. Tighten its belt -- hard times ahead.
  • wize up (28/10/2016, 19:17) Like (0) Dislike (0) Reply
    Is it safe to put my money in this bank(anybody let me know quickly)....thanks
    • @ wize up (28/10/2016, 22:13) Like (0) Dislike (0) Reply
      Not safe mehson go FIRSTBANK
    • @wize up (29/10/2016, 07:30) Like (0) Dislike (0) Reply
      You sure you want to put your money in Puerto Rico Bank? You go for it. Ask the PR banks if deposit insurance apply to the BVI, the only answer they can give you is NO.

  • PopDown (29/10/2016, 11:31) Like (3) Dislike (0) Reply
    Firstbank???? Really?? PR Banks? The safe Bank's here are the Canadian Bank's. CIBC and Scotiabank... Well capitalized and very strict with who they lend your deposits to. They will keep your money safe.
  • all is fine (29/10/2016, 17:17) Like (1) Dislike (0) Reply
    It's ok. They will NOT ever do anything about the really bad banks or their managers - only that which looks like
    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.
    • PopDown (30/10/2016, 08:21) Like (0) Dislike (0) Reply
      Perhaps If the "so-so" bad ones asked more questions, they wouldn't have have 20% of their loans going bad. Do you understand that the people that run NBVI are lending out the depositors money? It's not their own money they are lending, it's the depositors. and BTW @AllisFine, you sounding really basic with your comment.
  • Cover up (31/10/2016, 13:52) Like (0) Dislike (0) Reply
    So everyone is now swearing that the bank is in order? Le us hear what the IMF says next year!

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