In addition, the new bank will also offer depositary services to Gibraltar’s funds industry, in order, the Gibraltar Government said in a statement, to ensure that the sector “is able to meet the requirements of the Alternative Investment Fund Managers Directive (AIFMD)”.
The AIFMD is a European Union regulatory package that came into force in July, and sets new minimum standards for alternative investment fund managers who wish to market their products across Europe. These include a requirement that they appoint a single independent depositary for each alternative investment fund they manage.
The goal is to have the new bank fully operational by the third quarter of 2014, the Government said, adding that it would “continue to consult and engage with the Gibraltar Bankers Association” in addition to engaging directly with Barclays management, in an effort to “best co-ordinate relevant aspects of the launch” of the bank with Barclays’ scaling back of its services.
‘Gibraltar International Bank’
The approval for the new, independently-run retail bank, to be known as the Gibraltar International Bank, came on Monday during a meeting of the territory’s Cabinet.
In its statement, the government said a “professional team” had been engaged to oversee the launch of the new institution, “and detailed discussions have already been held with the Financial Services Commission”, with an FSC application expected to be filed this week on the bank’s behalf. The statement did not name the professionals on the new bank's launch team.
“The bank 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 statement noted.
“GIB intends to offer a full range of banking services, including the opening of current and deposit accounts, loans and overdrafts, [and] the issue of debit and prepaid cards. Online banking will also be made available.
“In addition, GIB will offer itself as a depository to the funds industry, in order to ensure the sector is able to meet the requirements of the Alternative Investment Fund Managers Directive.”
As reported, Barclays announced in late July that it would reduce its activities in Gibraltar by the end of 2014, in the wake of a review that it launched in March of 2013. At the time the announcement was made, the bank was said to have around 100 employees in Gibraltar.
Efforts to find a buyer for the business that would have been willing to make the investment necessary to take the business forward had been unsuccessful, in spite of having engaged with more than 50 "prospective interested parties", Barclays said, in announcing its Gibraltar scaleback.
Gib banks 'stretched' to take on Barclays clients
With Barclays beginning to wind down, other banks in Gibraltar have been stretching their resources to accommodate its clients, including the Gibraltar Savings Bank, a 131-year-old Gibraltar institution which has been relocated and expanded over the past 12 months. In its statement on Monday, the Gibraltar Government expressed its appreciation to these banks for their role in picking up the slack.
Fabian Picardo, chief minister of Gibraltar, said Monday's official approval of the plan to proceed with the new bank represented the delivery of something that different administrations over "many years" had sought to achieve.
"We will work hard to deliver this project in a short timescale," he added.
