Prime Minister Gaston Browne says he would not actively support the acquisition of FirstCaribbean International Bank by a domestic financial institution, warning that the transaction could further concentrate Antigua and Barbuda’s banking sector.

Browne said one local bank had approached him and proposed that the government revoke FCIB’s banking licence, which could pave the way for its local operations to be sold.

The prime minister did not identify the institution that allegedly made the request.

Browne said he supports increased local ownership within the banking industry but remains concerned about allowing a small number of domestic banks to control a larger share of the market.

“As much as I’m a proponent for local ownership, I’m very concerned about any further concentration of the market,” Browne said during the Browne and Browne Show.

He criticised aspects of the service provided by some local banks, pointing to empty automated teller machines, high fees and what he described as reluctance to lend.

Browne warned that further consolidation could create financial institutions that become too large and reduce the competitive pressure needed to improve customer service.

He argued that a larger international institution such as the Bank of Butterfield could potentially provide services that smaller domestic banks may be unable to offer, including support for letters of credit.

The prime minister clarified that he would not necessarily prevent a local institution from acquiring FCIB but would not campaign for or actively facilitate such a transaction.

“As much as I said to them that I would not block them from acquiring it, I would not actively promote it,” Browne said.

No proposed buyer, purchase price or formal acquisition process was disclosed during the programme.

This article was originally published by Antigua News Room. Read the original article here: VIDEO: PM Browne Says He Would Not Actively Support Domestic Banks Acquiring FCIB.