Scotiabank to Operate as “Belize Bank Corporation Limited” During Transition Period

The merger of the Belize Bank Limited and the Bank of Nova Scotia limited is a done deal. This was first confirmed via a cabinet press release two days ago. On Thursday, however, the Central Bank of Belize issued a press statement in which it states that the board was guided in its decision by the primary objectives. According to the Central Bank, those objectives include, “maintaining confidence in and promoting the safety and soundness of the financial system in Belize, promoting prudent and fair banking and financial practices; and supervising licensees to determine whether they are financially sound.” Scotiabank and the Belize Bank are bound by a Transition Services Agreement, which will ensure a smooth transition post-acquisition of the shares. During the transition and for an interim period of twelve to eighteen months, Scotiabank will operate under a changed name – Belize Bank Corporation Limited. The Central Bank of Belize says that the decision of the shareholders for the sale of Scotiabank was not influenced by any conditions specific to Belize nor was it prompted by any action on the part of the Regulator. It says that the decision was made at a corporate level as Scotia Bank was exiting what it considers to be non-core operations. This strategy extends to reengineering its operations in the various Latin American and Caribbean territories. Before the approval was given, the Central Bank says that it conducted a comprehensive assessment of the proposed application, inclusive of the benefits and potential risks and vulnerabilities, to ensure that it will not be detrimental to the interest of depositors and customers, and the stability of the financial system.