As the proposed sale of Chase Manhattan Bank’s Virgin Islands assets to V.I. Community Bank languishes in the territory’s bureaucratic backwater, yet another application awaits in the British Virgin Islands.
Under the sale, terms of which have not been disclosed, VICB would purchase Chase’s nine branches and 15 ATMs on St. Thomas, St. Croix, St. John in the USVI and Tortola in the BVI.
But for VICB to operate on Tortola it would have to apply for a license. And approval depends on a variety of factors, including what territorial and federal regulatory bodies decide, said Diana Maduro, inspector of banks, trust companies and company managers in the BVI’s Financial Services Department.
"The policy with the department is that we’re not at liberty to divulge whether we have received an application," said Maduro, adding, however, that "none of our bank licenses have been issued" to VICB or its parent company, Innovative Communication Corp., owned by St. Croix businessman Jeffrey Prosser.
She said an application is "thoroughly" reviewed with regard to its owners, directors, senior officers and capitalization.
"Each category of person is reviewed in terms of their fit and properness to conduct business within the British Virgin Islands," said Maduro. "In this regard we review personal details, police clearance certificates and reference letters on the directors and senior officers of the applicant."
Maduro said her office would contact the regulatory agencies in an applicant’s home country to find whether or not they support the applicant establishing a branch or subsidiary in the BVI.
Currently, the USVI’s Banking Board is studying the VICB-Chase sale proposal. Although the application for the sale was made to the Federal Deposit Insurance Corporation, the banking board will issue a recommendation to the FDIC regarding the sale.
It is unclear what effect the upcoming bribery trial of ICC vice president John Tutein might have on the banking board’s decision. If he is found guilty, it could play a role in BVI officials’ decision on granting a license.
Once Maduro’s department has examined an application, it is submitted to the Minister of Finance and the Executive Council for refusal or approval. Maduro noted that among the things that would preclude a license being issued are persons of "dubious repute associated with the applicant, and regulatory issues."
Meanwhile, the USVI banking board is moving slowly. Its chairman, Lt. Gov. Gerard Luz James II, declined last week to comment on the VICB-Chase sale other than to say he wants to "make sure everything is on an even keel."
"I don’t want to really speak out of turn," he said.
In addition to the Chase branches in the region, the proposed deal includes Chase Trade, Inc., a business that provides services to U.S. exporters.
Deposits in Chase’s business operations in the Virgin Islands are in excess of $500 million, with outstanding consumer loans totaling approximately $300 million. Commercial loans outstanding are approximately $37 million, Chase officials have said.
VICB, with two branches on St. Croix, has approximately $68 million in assets.
