DOC Issues Position Statement on TBAS

eob-2

The Territorial Bank of American Samoa is generating more PR from the administration.

Director of Commerce Keniseli Lafaele, a member of the TBAS Board of Directors, issued a statement today titled “DOC’s position statement on the Territorial Bank of American Samoa.”

It says, “With the discontinuance of the Bank of Hawaii’s lending practice, the Department of Commerce has not seen meaningful new business creation, development or growth. Equally concerning is the inability for existing businesses to expand their operations- to meet the ever-growing consumer and market demands.

“But most worrisome is the definite vacuum of financial services and moneylending security in order to provide the youth, investors, and existing businesspersons with the spirit of competition, innovation, and the ability to realize the infinite possibilities in our Territory.”

According to the DOC statement, the American Samoa economy, albeit it grew slightly two years in a row in 2014 and 2015, remains very fragile and is sustained mainly by the two pillars of government and the fishing industry.

“There is an absolute need to diversify and strengthen our economic base; and it is for this reason we strongly supported the ASEDA bond issuance as a means to strengthen our Territorial infrastructure.

“The Department of Commerce also strongly supports the formation of the Territorial Bank of American Samoa in order to provide moneylending and banking services to the Territory.”

Getting into the debate about TBAS not being insured by the Federal Deposit Insurance Corporation, the statement says, DOC absolutely supports FDIC insurance and will do everything possible to assist the bank in obtaining it.

But adds, “It’s important to note exactly what FDIC insurance is and is not.

“FDIC insurance is designed to protect depositors in the event of bank failure. Even then, it is only limited to $250,000. It is not, however, insurance against robberies, embezzlement, fire, natural disasters, and other causes of disappearing funds.”

The DOC position statement declares that for FDIC insurance to be applicable, “the bank needs to fail as a bank—that is, make loans to people who either refuse, or are unable, to pay them off.”

“As the Territorial Bank is being formed primarily to lend to the citizens or residents of American Samoa, it is the citizens or residents of American Samoa, given competent management and oversight of the bank, who will determine its success or failure.

“We are truly thankful that our bondholders believe we will be successful, DOC makes this invitation: please join us in supporting the creation of the Territorial Bank as we simply cannot let fear of failure paralyze our economy. If we do not affirm that we believe in ourselves now, who will believe in us ever again?”

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , ,