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Dec 16 - Gibraltar International Bank to Ease Retail Banking Strain of Barclays Shutdown

cm bankingToday, Chief Minister Fabian Picardo, with Financial Services Minister Albert Isola at his side, announced the development of a new, locally owned bank for Gibraltar that will offer a full range of banking services. The policy formerly made an appearance in the 1996 GSLP manifesto and has continued to do so in successive manifestos. The Chief Minister noted during the announcement that plans for the Government owned Gibraltar International Bank (GIB) have been accelerated following Barclays Bank’s decision to reduce its retail and corporate services in Gibraltar.

The Cabinet this morning approved the establishment of the new credit institution, with detailed discussions on the matter having already been held with the Financial Services Commissions. The bank, unlike the Gibraltar Savings Bank, which is not a credit institution, will be subject to the licensing and regulation of the Financial Services Commission, and will be independently managed by professionals with appropriate banking experience.

The Government insists that the bank should be fully operational by the third quarter of 2014. They continue to liaise with the Gibraltar Bankers Association ‘to ensure their needs are addressed as the project evolves’. Minister Isola today insisted that the Association s calling for further retail banks for Gibraltar, as it will relieve the pressure they are under. He added that the other banks have tried to absorb the fallout that has come from the Barclay’s downsize, but he adds that it is just not possible to take on that many accounts.

When pressured on whether he envisioned GIB to be pushed into the forefront of retail banking in Gibraltar, the Chief Minister explained that with a project like this, you can not aim towards mediocrity as it is important to the taxpaying shareholders that the bank should want to give maximum value in the most efficient possible way.

Answering questions on whether GIB will take on the majority of the former Barclays workforce, the Chief Minister noted that vacancies will be available for those in the community who wish to apply for them, but it is very likely that those who are going to be best suited to deal with this particular group of clients are likely to be those who previously worked for Barclays Bank. Mr. Picardo emphasized that the Director’s board will be independent from the Government, who will act solely as shareholders of the bank. He added that ‘a number of key elements of who is going to be on that board’ are currently being compiled.