The Tribune

By LEANDRA ROLLE

Tribune Staff Reporter

lrolle@tribunemedia.net 

PROGRESSIVE Liberal Party Deputy Leader Chester Cooper yesterday urged the government to seek immediate meetings with Scotiabank over its decision to end operations on four Family Islands, arguing the move will deal a “serious blow” to their already struggling economies.

His comments came after the Canadian-owned bank announced Tuesday that it has decided to consolidate its banking operations on Abaco, Andros, Long Island, Exuma and Paradise Island into branches on New Providence.

The move is expected to take place over the next four months.

The decision, bank officials added, was in response to the COVID-19 pandemic and was also due to a reduction in revenue and profits, and the increase in online transactions by customers.

Responding to the news in a press statement yesterday, Mr Cooper called Scotiabank’s (Bahamas) decision “most disappointing” to residents in those islands, who have consistently patronised the financial institution for decades.

Speaking on behalf of his constituency, the Exuma and Ragged Island MP added: “The people of Exuma have consistently complained of the dwindling level of services of the banks there, particularly after Bank of The Bahamas closed its branch in 2017.

“On Exuma, the move will impact many businesses, tourists, workers at Sandals, government employees, pensioners, churches and others. It will be near to impossible to keep the ATMs properly stocked with cash. It will also hamper attempts to deposit cash, posing a safety risk to business owners.”

He also pointed to the negative impacts it will have on Family Islanders, who might not be able to travel to New Providence in this current COVID climate.

He continued: “It is even more of a logistical nightmare considering the reduced operating hours of banks on New Providence and the ever-shifting travel protocols for inter-island travel under the state of emergency that apparently has no foreseeable end.

“The idea that their new model can replace traditional banks on islands is unrealistic. This is not a serious alternative to meet the needs of the people in these communities.”

While calling for government intervention on the matter, Mr Cooper also urged the Minnis administration to reopen Bank of The Bahamas in Exuma and expand its presence throughout the Family Islands.

“By doing nothing, we are leaving thousands of Bahamians essentially unbanked and at an extreme disadvantage in terms of economic viability and growth,” he claimed.

“These developments cannot be left as is as we witness the further erosion of the financial capacity of our Family Islands.”

Finance Minister Peter Turnquest, in a statement, told Tribune Business COVID-19 had “accelerated” the drive towards digital commerce “and these developments have caught up with us, unfortunately”.

Mr Turnquest said while the government “regrets” Scotiabank’s decision, especially the redundancies that will result, residents and businesses in the affected islands are urged to take advantage of the just-launched Bahamian digital dollar and other electronic means to meet their payment needs.

“We must double our efforts to further deepen and diversify our economy, projecting the future of work in The Bahamas and opportunities to move into different types of work, taking advantage of the technology and Fintech developments,” he added.

In response, Mr Cooper said: “Comments in the press by the minister of finance today indicate that the current administration has already thrown in the towel in this regard. They must not give up so easily.”