Describe Banking in the Turks and Caicos Islands (Article Sample)

Banking in the Turks and Caicos Islands
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Table of Contents TOC \o "1-3" \h \z \u TASK 1 PAGEREF _Toc454052218 \h 3The History of Banks in the Turks and Caicos Islands PAGEREF _Toc454052219 \h 3TASK 2 PAGEREF _Toc454052220 \h 5Financial institutions available on Turks & Caicos Islands PAGEREF _Toc454052221 \h 5Scotio Bank (Turks & Caicos) Ltd PAGEREF _Toc454052222 \h 5Bordier Bank International bank and Trust Ltd PAGEREF _Toc454052223 \h 7British Caribbean International Bank Ltd PAGEREF _Toc454052224 \h 8Temple Financial Group PAGEREF _Toc454052225 \h 9TASK 3 PAGEREF _Toc454052226 \h 9Importance of the Financial Services Commission in the Turks & Caicos Islands PAGEREF _Toc454052227 \h 9References PAGEREF _Toc454052228 \h 11
TASK 1
The History of Banks in the Turks and Caicos Islands
Introduction
Turks and Caicos Islands (TCI) are located in the south of Bahamas Chain at the British Overseas Territory and in the northern Wider Caribbean. The government of the TCI has the mandate to manage the marine living resources and other economic factors. Offshore banking is one of the major sources of development in the Turks and Caicos Islands. This is because offshores banking is directly related to the management or the status of the islands and their resources. The islands are much attractive to both tourists and the investors. The main activity in the area is fisheries and about 70% of the entire population depends on fisheries either directly or indirectly. Banks in the region are one of the economic indicators portraying the economic status of the islands (Harold & Richards, 2014). The history of banks in the Turks and Caicos Islands is as described below.
History of Banks in the Turks and Caicos Islands
In 1852, Grand Turk lighthouse cast iron pieces were assembled in the Turks and Caicos Islands. The lighthouse stood on the north east pole to protect seafarers from catastrophes in their economic activities and most especially in the financial institutions. Turks and Caicos Banking Company is one of the most original financial institutions in these Islands. The bank was established in 1980 and it was intended to serve the symbol of the TCI and facilitate transactions as well as other investment and capital avenues to the islands (Harold & Richards, 2014). Turks and Caicos Banking Company played a great role right from the birth of the islands by acting as the offshore finance centre and it continually expanded along with the island.
The banking processes at TCI begun during the late 1960s. This was after a visit of the Norwegian national Nils Seim and his wife, Grethe to Grand Turk and they were much interested in the island. They planned for an investment in the area for the entire of their retirement. The entrepreneur Nils Seim, had foreseen that Turks and Caicos would emerge as one of the most successful financial and tourism centre. The businessman identified the need for an alternative effective and efficient retail banking just like in the case of a European – system where private banks have emerged to serve the needs and want of the private investors. Nils Seim incorporated the first bank by name, Turks & Caicos Banking Company by following the legal process as required by the government as at that time (Harold & Richards, 2014).
In 1981, the operations of the bank were financed by a local promoter Evan, who built Harbour House. The building became the first modern commercial building on Grand Turk and the bank became its first occupant. The bank continued with the operation and it was based here until 1997 when it was then transferred to the Mac Law House that is located at Duke Street, Grand Turk.
In early 2002, the corporate governance and the board of directors were restructured after the death of one of the founders, Grethe Seim. A strategic decision of opening an office at Caribbean Place was made and this became the first branch of the bank. The branch facilitated the expansion of the financial activities to the customers in the tourism mecca of the country. This move was a good indication of the growth of the Turks and Caicos Banking Company (Harold & Richards, 2014).
In January 2011, another modern branch was opened in another premise at the Regent Village which is the heart of the Island as per as economy is concerned. According to the Seim and his family, banking business at in the Turks and Caicos Islands was a successful investment that generated a maximum profit since its establishment in 1990. The bank has been able to sponsor various activities of the Turks and Caicos National Museum. For example, the bank donated funds for construction of the new clubhouse at Grand Turk at Waterloo Golf Course. The bank has also continued to support the National museum sports and other social activities including education in the islands.
Following the success of Turks & Caicos Banking Company and the increasing demand for banking services at Turks & Caicos Islands, several other financial institutions have been put up in the region and hence marking a growth in the banking industry at Turks & Caicos Islands.
TASK 2
Financial institutions available on Turks & Caicos Islands
As mentioned earlier, the demand for banking services at Turks & Caicos Islands continued to increase day by day. This called for the need for more financial institutions to serve the need as well as taking advantage of the opportunity. According to the recent study, the islands have the following financial institutions besides the Scotio Bank (Turks & Caicos) Ltd British Caribbean International Ltd, Temple Financial Group and Bodier international Bank & Trust Ltd.
Scotio Bank (Turks & Caicos) Ltd
This in a registered and licensed financial institution located on TCI (Arnold, 2007). The bank offers the follwing services;
Account opening. Scotio Bank provides you with merits of operating a private banking with the most convenient system. The bank offers and extensive range of credit and banking services to its users of their bank account. The process of opening an account with Scotio Bank is much simplified to attract as many customers as possible. The bank is also investing heavily in research and development and through innovation; they have come up with the online banking system that enables account holders to access basic banking services without necessarily walking to the bank.
Corporate portfolio management- The Scotio Bank allows the investors to efficiently invest directly in the stock market. The banks offer advisory towards risk while one is making a financial decision for investment. They help one to develop financial objectives as well as in setting investment goals. The bank has professionals and experts who discuss the matters relating to financial modeling for effective strategies.
Foreign Exchange- The bank also provides foreign exchange services designed to meet their customers’ needs. The bank describes the currency information including the exchange rate quotes, risks and return evaluation strategies and implementation of the investment decisions. The basic role of the foreign exchange professional is to help the clients in the understanding of the customized services based on their needs. With this service, the investors can make financial transactions by sending or receiving funds in all currencies to facilitate the payments overseas.
Personal wealth management - Scotio Bank also provides wealth management services to its customers. The goal of the bank under this service is to help the client in pursuing their dreams. As an investment advisor, the specialists of the bank offers a financial planning designed to address long-term desires when one needs to accumulate and maintain his or her wealth. Relying upon the clients’ experience, the bank has been able to focus on the current and future situation in relation to the financial objectives of an individual. The institution also provides a periodic review and monitors the performance of your investment to ensure that it adapts to the existing market condition.
Bordier Bank International bank and Trust Ltd
The bank is much recognized by offering a verriety of services and majorly specializes in the management of wealth and assets as well as financial advisory roles (Arnold, 2007).
Assets and wealth management- The main role of Bordier Internationa Bank & Trust Ltd. is based on the investment strategies to their clients. The need for fixed income investment has made the bank of stretch its services to offer investment strategies to its clients. Apart from investment advisories, the bank also provides various investments options to its clients. These investment options include bonds and cash fixed deposits. The analysis of the institution has also shown that bonds represent the highest proportion of the overall investments in Turks & Caicos Islands. The bank offers assistance to the investors in meeting investment objectives for high-yield on various types of bonds. The Bank enables the investors to access their funds to finance their investment portfolio.
Financial advisory- The bank offers advice to its clients relating all financial matters including portfolio management as well as financial planning.
Personal and business account opening. The Bank provides you with merits of operating a private and/or joint banking with the most convenient system. The bank offers and extensive range of credit and banking services to its users of their bank account. The process of opening an account with the Bank is much simplified and one just needs to fill in their bank account opening forms and submit to the bank. The forms are later processed within the shortest duration possible and the clients are ca...