All 7 members of the Board of Directors of the Territorial Bank of American Samoa fronted before the Senate Government Operations Committee this morning with the aim of clearing up any doubts in senators’ minds about the bank.
And when TBAS Board Chairman Utu Abe Malae and his group left the chamber, all except a few senators were singing praises of the administration’s move to help residents in the face of being left with only one foreign owned commercial bank,which is not making loans.
Along with Utu were Alo Dr. Paul Stevenson, Papalii Laulii Alofa, Steve Watson, Keniseli Lafaele, Salaia Gabbard , and Ruth Matagi Faatili plus the Chief Financial Officer of TBAS.
The hearing, KHJ News was told, was at the initiation of the TBAS Board, to clear up any confusion about the issue regarding lack of Federal Deposit Insurance Corporation coverage for the new bank.
Senator Tagoai Tuiolemotu got this reply from Board member and governor’s legal counsel Steve Watson when he asked if TBAS will have any other form of insurance.
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Chairman of the Board Utu said the bank will operate as if it was insured by FDIC and their aim is to obtain FDIC membership two years from now.
The government bank will officially open on Monday at the old BOH premises on the ground floor of the Centennial Building in Utulei. 
Board member Salaia Gabbard, with many years of management experience in the banking industry here and the mainland and Makerita Polu, formerly of ANZ, who is Vice President of Operation for TBAS, have been conducting a marketing campaign for the bank.
Gabbard said they’ve opened nearly 400 accounts already and have issued TBAS debit cards.
She said the bank will issue faalavelave loans beginning from $500 up to $2,500, a month after their opening.
Senator Tuaolo Fruean asked whether the TBAS debit cards are honored off island.
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Senator Tuaolo and TBAS board member Salaia Gabbard.
Gabbard also told senators TBAS will help consumers with a bad credit record improve it so they can loan.
And she emphasized that people with bad credit shouldn’t ignore it.
Board Chairman Utu said it’s disappointing that commercial banks seem to “have given up on making loans” to the local community and the Territorial Bank of American Samoa is stepping in to meet the need for loans.
He said this is a different market and adjustments have to be made to account for cultural obligations.
As explained at the hearing, no board director or officer of the bank can loan from TBAS. But employees can.
Board member Papalii Laulii Alofa also chimed in that what separates TBAS from the other commercial banks is that it exists to help and serve the people of American Samoa. even those whose credit is red all over.
