The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

Businesses and residents in northern Abaco were yesterday "extremely disappointed" over CIBC FirstCaribbean's decision to close three branches, with community leaders warning the move will have a "devastating effect on commerce".

Matthew Lowe, Green Turtle Cay's chief councillor, told Tribune Business that the CIBC branch on Green Turtle Cay last Thursday, having announced the decision back in late April.

"It is very disappointing. We can only assume that they did this to cut back on expenses, but we don't know; they didn't say why other than that they were consolidating," he said.

"We are very disappointed with how they went about it. A lot of their clients have been with them for a very long time This will impact us tremendously. The bank was open one day a week, down from two days a week, and now we have nothing. There is no other bank to do deposits, withdrawals and there's no ATM. Visitors can't get cash, and businesses and residents won't be able to deposit or get cash."

Mr Lowe said there are two resorts and several marinas on Green Turtle Cay, as well as several second home rentals that cater to a high volume of tourist throughout the year.

In a letter to the Abaco Chamber of Commerce, he argued that not having a branch on Green Turtle Cay puts the future of several businesses, which have to secure large amounts of cash, at risk,

Transporting it to the nearest bank is a 10-minute ferry ride, then a 30-minute drive to Marsh Harbour.

"We had no dialogue on this matter, and would have appreciated a Town Meeting to discuss the reason for their closure and see what alternatives there were. A month's notice's simply wasn't enough," said Mr Lowe.

CIBC FirstCaribbean, in a notice posted to its customers in April, said the Hope Town, Man-O-War Cay and Green Turtle Cay branches would be closed and consolidated with its Marsh Harbour branch on May 30, May 31 and June 1 respectively.

Attempts to reach CIBC FirstCaribbean executives for comment on the closures were not successful up to press time.

The move by CIBC FirstCaribbean comes on the heels of Royal Bank of Canada's (RBC) decision to close branches in Spanish Wells, Bimini and Treasure Cay. The bank, back in March also unveiled its plans to close its its location at Lynden Pindling International Airport (LPIA) in Nassau.

Scotiabank, too, has reduced its Family Island branch presence in recent years as the Canadian-owned commercial banks seek to cut costs and drive customers to online and electronic banking channels.

Northern Abaco has effectively been left without a physical bank branch presence outside Marsh Harbour, highlighting why the Central Bank is so keen to push forward with plans to regulate electronic payments solutions providers.