Leading up to its opening for business in early October, the Territorial Bank of American Samoa has rolled out a publicity campaign to drum up support and attract customers.
A press release received by KHJ News this morning recaps the genesis of TBAS, from the time the Bank of Hawaii announced it was withdrawing from the territory in late 2012.
It says subsequent to appeals by the governor to BOH and the Federal Deposit Insurance Corporation, BOH agreed to continue operations until a replacement bank could be established in the territory.
Then last year, the Fono passed two statutes to permit the establishment of a local bank and create a regulatory office, Office of Financial Institutions (OFI), to ensure that any bank or financial institution in American Samoa would operate in a safe and sound manner.
Also last year, a bond was successfully sold and included funding for the establishment of a locally owned bank and the OFI.
According to the press release, the government bank will open first at the former BOH premises in the Centennial Building in Utulei and that opening is aimed for early October.
The opening of the second branch of TBAS is planned for Spring 2017, which is when BOH is scheduled to leave the territory for good.
According to the TBAS release, “The People’s Bank” or “Faletupe o le Atunu’u” will begin operations under a team of seasoned local banking professionals and experienced U.S. banking management.
For the first two years the bank will operate as a de novo or new start-up entity.
As performance history is developed TBAS will apply for FDIC membership.
TBAS is to provide checking and savings accounts, ATM services, MasterCard registered debit cards, consumer and business loans and lines of credit and other services typically provided by banks.
The government bank will process all currency transactions through the U.S. Federal Reserve banking system the entity that controls the processing of all bank currency transactions throughout the U.S. .
The Federal Reserve, according to the release, will also serve as one of the supervising agencies along with the OFI to ensure that TBAS operates in a safe and sound manner.
