By LINDSAY THOMPSON lindsay@nasguard.com

The Bahamas is still a stable environment for offshore financial business, according to Central Bank Governor Julian Francis.

On Tuesday, discussing the Bank of Butterfield's acquisition of the entire share capital of Thorand Bank & Trust Ltd. in Nassau, Mr. Francis said, "The Bahamas could not attract a first-class institution such as the Bank of Butterfiled, if this jurisdiction is not seen to be stable and offering good business prospects."

The move brings to four the remaining Bahamian-owned offshore financial institutions in the country.

As to whether Bahamians still have what it takes to own and manage offshore financial institutions, Mr. Francis, during an interview with the Guardian, said, "My understanding is that the parties have agreed on a business transaction. Bahamians, like others are free to sell if they so wish."

He noted that Butterfield meets Central Bank criteria as to the reputation and soundness of licensees.

On Aug. 24, the Bank of N.T. Butterfield & Son Ltd. announced the acquisition of the entire share capital of Thorand Bank & Trust Ltd. in Nassau.

Thorand Bank & Trust, established in 1960, provides banking, trust and other fiduciary services to private and institutional clients.

Announcing the acquisition , Graham Brooks, executive vice president, International & Trust, Bank of Butterfield said, "This is an important development for Bank of Butterfield. "We have acquired a solid base on which to build a major international private banking and wealth management market."

He added that Thorand has an excellent client base and that Bank of Butterfield has been impressed by the company's enthusiastic and skilled employees. Mr. Brooks also noted the helpful assistance provided by the Central Bank of The Bahamas and the management of Thorand Bank & Trust during the negotiations to complete the transaction.

Commenting on the acquisition, president and CEO of Bank of Butterfield Alan Thompson said the company has achieved a "strategic objective" by entering The Bahamas, a jurisdiction which has shown commitment and success in developing a quality international business environment.

"In line with our strategy, we will concentrate on the delivery of a range of our core services, including private banking, wealth management and investment and pension fund administration.

"We are pleased to be a part of the financial services community in The Bahamas and look forward to working closely with our new team," he said.

Thorand Bank & Trust will shortly be renamed Bank of Butterfield (Bahamas) Ltd. and Robert Lotmore, who is currently president of Thorand, will continue to lead the business as managing director.

Bank of Butterfield was established in 1858. A specialist in offshore financial services, it is said to be a vital community bank in both Bermuda and the Cayman Islands. Headquartered in Bermuda, Bank of Butterfield also has offices in Barbados, Guernsey, and the United Kingdom.

Bank of Butterfield is a publicly traded corporation with its shares listed in the Bermuda and Cayman Islands stock exchanges.

Should it be possible in the future to list non-resident entities on Bahamas International Securities Exchange, a listing by any licensed bank company in The Bahamas could benefit the Bahamas Securities Exchange, Mr. Francis said.

Caption:Julian Francis, Governor, Central Bank of The Bahamas

Posted Thursday 28 August, 2003