Capital G Bank Sets Up Shop In Bermuda

by Amanda Banks, Tax-News.com, London

09 October 2001

The Capital G group has announced that its deposit company, Gibbons Deposit Company, has won approval from Bermuda's Finance Minister, Eugene Cox, to become the Island's fourth bank.

Capital G Bank president and CEO James Gibbons described Mr Cox's decision as a 'historic moment' for both Bermuda and Capital G. He said: 'Over 100 years has passed since a bank licence has been granted to a wholly Bermudian-owned and operated company, the last being the Bank of Bermuda and the Bank of Butterfield, respectively. Capital G is the first organization to receive this licence under the new Bank and Deposit Companies Act taking into consideration all the new regulations established by the Bermuda Monetary Authority.'

He continued: 'The Capital G group has licences to conduct investment business, trust business, brokerage business with the Bermuda Stock Exchange, deposit taking and, now, a licence for banking. We are proud of this accomplishment and are particularly happy for our customers. By obtaining status as a bank, we are now able to access bank networks, to provide a more enriched product/service offering to our customer base, to strengthen our entry into the E-commerce arena, and to build strategic alliances with other groups. All in all, this is a step forward in Capital G's overall development to be used to benefit our customers and staff.'

The Gibbons Deposit Company, now known as Capital G Bank, began taking deposits around 60 years ago and in the last five years the company's assets grew by 169 per cent which equates to $500 million. The Bank intends to build on its banking services with particular focus on e-commerce and online banking and will concentrate on the domestic market before it enters the international arena. 'We want to walk, before we run,' said Mr Gibbons.

He added that the Bank has no intention at this time of going public and will not apply for exemption from the 60/40 ownership rule.

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