“The Virgin Islands Banking Board has approved a permit for Oriental Bank to organize a bank in the Territory subject to three special conditions as considerations of the permit approval,” said Lt. Governor Roach, Chairman of the Virgin Islands Banking Board.
As conditions of the permit, Oriental Bank must: 1) Preserve the severance benefits of the bank’s employees up to one year into its operations; 2) Adhere to standards set by the Community Reinvestment Act and maintain a satisfactory rating; 3) Include the island of St. John in consideration of expanding services in the bank’s growth initiatives.
The permit approval for Oriental Bank is the first step in a multi-step process. In order to assume Scotia Bank’s operations and start serving customers, Oriental bank will need to obtain a license and approval from the Banking Board, approval from the federal regulators at the FDIC, and approval from the Puerto Rico Commissioner of Banking.
“The Board was pleased with Oriental Bank’s presentation and its overall positive view of the economic impact its presence will have in the Territory,” said Lt. Governor Roach.
“Oriental’s acquisition of the Puerto Rico and U.S. Virgin Islands Scotia branches will make the FDIC insured bank, the second largest in Puerto Rico, where it is headquartered,” said Lt. Governor Roach.
Board members Rosalie Javois, Richard Grant, and Finance Commissioner Kirk Callwood also voted on and approved a request for the transfer of ownership of Generation Holdings, LLC from the CL USVI Trust to ASH Bank Trust.
The Board also received a State of the Bank Report for the Economic Development Bank. Board members shared concerns about the potentially underserved industries of farming, fishing, and agriculture. Questions were raised regarding how the Economic Development Bank can better support those areas and grow the economic development of the Territory.
For additional information, please contact the Division of Banking and Insurance at (340) 773-6459 on St. Croix and (340) 774-7166 on St. Thomas.
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