Describe Banking in the Turks and Caicos Islands (Article Sample)
1. Outline the history of banks in the Turks and Caicos Islands (10 marks)
2. Identify the different financial institutions available on island and state the services/role provided by each (20 marks)
3. Discuss the importance of the Financial Services Commission in the TCI.
Banking in the Turks and Caicos Islands
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
The History of Banks in the Turks and Caicos Islands
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 â€“ 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.
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 thei...
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