The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

MPs and private sector executives from the two islands affected by Royal Bank of Canada's (RBC) pull-out yesterday said this would only "deepen the hardship" for already-sluggish economies.

Adrian Gibson, Long Island's MP, told Tribune Business: "This is only going to deepen the hardship in Long Island, and businesses will suffer. Long Island continues to be under-served when it comes to banking.

"We don't have any full service bank, and that is unacceptable.

"I understand that banking is a business, but communities are being abandoned. Long Island is dying and this move is indicative of that. This is going to have a trickle down impact where people will lose jobs, persons will lose rental income, and families will be impacted. We have to limit our reliance on these foreign commercial entities."

Mr Gibson who called for a 'real Family Island development plan, following a move that will leave Long Island without any commercial bank presence.

Picewell Forbes, the South Andros MP, told Parliament that RBC's move had caused concern within the community and would create security concerns from people having to hold considerable sums of cash. He said: "This leads to a further social dislocation in that community. It sends a level of weariness and concern. People are very concerned about this."

Mr Forbes said the web shops had filled a void or 'vacuum' left by the regulated banking sector. He added that Bank of the Bahamas has been operating in South Andros, operating two days a week, and three days a week in Mangrove Cay. "You can't have that but that's where we are," he said.

RBC announced on Tuesday night the closure of its Andros Town and Long Island branches with effect from March 30 and April 13, respectively.

Ambika Cooper, a director with the Andros Chamber of Commerce, told Tribune Business: "That [RBC] is the only bank in that area. The only other bank, where persons would have to physically drive to, is in North Andros and that's Scotiabank.

"BOB is in South Andros and you need the ferry or some sort of boat to get there. This leaves businesses in the area with no other option but to drive to North Andros, and that's a 45 minute to an hour drive each way. Considering that the economy is sluggish this is another blow to the business community."

Businessman Mario Cartwright, a director at the Long Island Chamber of Commerce, told Tribune Business: "This is not good for commerce on Long Island or any Family Island. This really gives a dim outlook for the economic future of the island. When second homeowners and potential investors see these kinds of things they get turned off. Most business persons say this is like going backwards."

He added: "We have a dilemma now. What do we do with cash deposits? Do we fill up duffle bags and go to Nassau once a month. RBC has many customers on Long Island. At one point we had two banks with four branches; now we have one bank open two days a week that doesn't accept cash deposits.

"This is terrible, and what really bothers me is that the number houses are contributing to this. The banks won't admit it but a lot of cash that used to go to them goes to the number houses in Nassau."