By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
Bank of the Bahamas (BOB) yesterday announced it will shut down its Exuma branch and not reopen its Eight Mile Rock Branch effective December 31, with the moves to impact eight jobs.
BOB said in a statement yesterday its Board of Directors has taken the decision to shut down the branches.
"The decision to close both locations is part of BOB's ongoing transformation strategy of streamlining its operations and reducing operational costs," the bank said in a statement.
It added: "While BOB will no longer maintain a branch in Eight Mile Rock it is currently looking at options to maintain other channels of service delivery primarily via its BOB EXPRESS ATM network. Additionally the BOB EXPRESS Online Banking service channel will continue to be available to all BOB customers. BOB is committed to take all reasonable steps to minimise the impact on our customers."
During the bank's AGM back in August, its chairman Wayne Aranha noted the Bank has shown marginal success in reducing costs with its efficiency ratio is below that of its competitors. In this regard, Mr Aranha said that focus would be placed on cost control and revenue enhancing opportunities. "Stringent cost control measures will be implemented, consistent with the need to ensure that risks are appropriately managed and customer service is not sacrificed.
"The Bank will also seek cost recovery from Government in those cases where loss-making operations continue as a social or national service in a Family Island," he stated at the time. It was also revealed at that AGM that government had agreed to allow the special purpose vehicle Bahamas Resolve Ltd. (Resolve) to acquire $166 million in impaired commercial loans from BOB.
Comments
sealice 7 years ago
This was all part of the PLP and Number Bosses plan anyway.... in a year or so the only way you'll be able to move money from an outisland is by person in ya hand or thru a numbers house.....
Well_mudda_take_sic 7 years ago
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bogart 7 years ago
The wrong eight got axed.
For very plausible and common sense reasons these branches got closed
What is not plausible is that noone in the headoffice or branches responsible for the bad loans given out or the Boatd of Directors are being held rrsponsible. Very very simple....look at the loan applications by any outsider surely IF every loan applicant was qualifying then why are they now failed loa ns???
Who authorized those loans for approvals...how can loans keep going bad and no persons let go. AND IF ANY LET GO THEN ARE THEY GETTING SETTLEMENT IN FULL PRESUMABLY TO KEEP QUIET.?
INVESTIGATIONS AND JAIL TIME NEEDED. WHO AUTHORIZED THAT THE CENTRAL BAMK BE SUED AND ONLY TO HAVE THE INCOMING GOVT SETTLE THE BILL AND SUIT DROPPED. WHO WILL PAY FOR THE LAWYERS...
John 7 years ago
Damn if you do, damn if you don’t. BoB cannot cannot continue being a burden on the Bahamian taxpayers. And if the bank is to be saved there has to be some serious cost cutting. Once the bank returns to profitability then it can revisit these islands and reopen these branches at its own carrying costs and out of goodwill and a perspective of making profits in the future
sheeprunner12 7 years ago
Can this be a profitable bank again??????? .......... How can the $200million debt burden be eliminated as a result of PLP (and FNM) crony abuse?????????
John 7 years ago
How many banks did Barack Obama bail out? What was each of their individual debts? Have the banks returned to profitability? How many Batak-rescued banks have failed? Stop talking ignorant when sense is so common.
John 7 years ago
Barack-rescued *
bogart 7 years ago
Dodd Frank WallStreetReform andConsumerProtecrion ActJuly 21 2017
Recently seen the Wells Fargo fiasco where to reach targets officers created accounts etc. This was discovered and officers punished.
If a Bahamian bank customer has a problem there is noone to go to except to find money to hire a lawyer who may not want to represent you brcause of not getting future business in doing conveyanves and mortgage documentation, lawsuits etc
Currently Bahsmians have experienced for over a year 100% bank fee increases the hoghest in the Caribbean as banls seek to maintain profits.
Protections are needed fpr customrs against what could be cartels. And errant banks.
Bank of the Bahamas should be investigatef in the large volume of loans in default. Into the sudden drop in share value from over 5 dollars to less than 2 dollars etc. As some 160 million was wiped off in shareholder value. This is significant amd affects the entire market. years ago with a Canadian bank some 60 million was lost in value affecting Bahamian pensioners.
BOB SHOULD BE COMBINED WITH DEVELOPMENT BaNK AND MORTGAGE CORPORATION FOR SYNERGIES Reduce COSTS .
Love my Bahamian tings but like hotels 7f you cannot run them then sell them. If you cant fish cut bait if you cant cut bait...?..
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