The Republic Bank Group has announced its intention to form a holding company, to be called Republic Financial Holdings Limited.
At a press briefing at the bank’s head office in Trinidad on June 3, Managing Director, David Dulal-Whiteway, said that the bank has traditionally operated under the dual role of a licensed commercial bank and a holding company. While the dual roles have been well managed to date, he said the bank wanted to facilitate even more effective management and good governance within the markets in which it operates, particularly as it welcomes its new members of the Group, namely HFC Bank (Ghana) Limited and soon a bank in Suriname.
“The bank has been expanding rapidly through acquisitions and we believe that it is a good time to make a change in structure, to separate the responsibilities of the bank from the responsibilities of the holding company.” Dulal-Whiteway said.
Currently, there are 16 territories that report to the Republic Bank Group.
Dulal-Whiteway noted that the change is subject to the receipt of final approval from the bank’s shareholders, at a special meeting to be held on June 26, 2015.
He assured that the new holding company would in no way negatively affect customers’ day to day banking business. “It will have no material impact on the bank, its financial statements or the bank’s management structures,” he said.
The bank, which recently gained 57 per cent market share in HFC Bank (Ghana), is one of the largest and most successful banks in the English-speaking Caribbean, with over 178 years of banking experience.
The proposed formation of Republic Financial Holdings Limited, to be achieved effective October 1, 2015, will be achieved by Republic Bank Limited transferring (vesting) all of its banking business into Republic Finance and Merchant Bank Limited (FINCOR), save for the shareholdings in the following subsidiaries: Republic Bank (Guyana) Limited, Republic Bank (Barbados) Limited, Republic Bank (Grenada) Limited, Republic Insurance Company (Cayman) Limited, Republic Bank Trinidad and Tobago (Barbados) Limited, Republic Securities Limited, HFC Bank (Ghana) Limited and East Caribbean Financial Holding Company Limited.
FINCOR will then change its name to Republic Bank Limited and Republic Bank Limited will change its name to Republic Financial Holdings Limited. (PR)