Eastern Caribbean Central Bank revokes BON Bank Ltd’s License

The Eastern Caribbean Central Bank (ECCB) has revoked the license of BON Bank Ltd, effective December 15 of this year. 

In a statement released by the ECCB, which acts as the central bank for Antigua and Barbuda, Dominica, Grenada, St. Lucia, St. Vincent and the Grenadines, and Montserrat, it was announced that BON Bank Ltd has been integrated into the operations of The Bank of Nevis Limited since January of this year.

Integration of BON Bank Ltd into The Bank of Nevis Limited

This move effectively ceased the banking activities of the Nevis-based financial institution, while stating that the revocation of BON Bank Ltd’s license will not impact the ongoing operations of The Bank of Nevis Limited.

BON Bank Limited was formerly known as RBTT Bank (SKN) Limited and was owned by the Royal Bank of Canada (RBC).

Phases of the acquisition

The ECCB had initially disclosed details of this transformative acquisition in January, highlighting the two phases of the transaction. 

In the first phase, The Bank of Nevis Limited acquired an impressive 95.78 per cent majority shareholding and 1000 Class A shares of RBTT Bank (SKN) Limited on April 1, 2021. 

Following this acquisition, RBTT Bank (SKN) was subsequently rebranded as BON Bank Limited.

In the second phase of the transaction, The Bank of Nevis Limited purchased the assets and liabilities of BON Bank Limited, solidifying its presence in the financial sector within the Eastern Caribbean Currency Union (ECCU).