The collapse of major banks in the United States has prompted a call from Tuala-uta Representative Larry Sanitoa for a comprehensive report from the Territorial Bank of American Samoa (TBAS) to determine its financial state.
On Friday, Silicon Valley Bank closed and Signature Bank of New York also announced its closure on Sunday.
The New York times said, about 90 percent of the New York-based lender’s customer deposits were uninsured but Signature was about half the size of Silicon Valley Bank, which regulators seized on Friday.
Sanitoa said, on the House floor today, that what happened to US banks is worrying, and pointed out at least those banks are insured by the federal Insurance Deposit Corporation; but TBAS isn’t.
He said, the bank is supposed to submit a financial report in March to update the Fono on how it’s doing. But this hasn’t happened.
Rep. Vesiai Poyer said, the last time there was a discussion with the bank and the Office of Financial Institutions, the House was told that when they return from their recess the reports will be submitted, but that’s not the case.
Vice Speaker Fetu Fetui first raised concern about the fees that TBAS was charging for loan applications. He said, the House received a complaint last week from individuals about the bank fees, and the House needed to look into the complaint.
Since the chairman of the House Economic Development Committee, Rep. Samuel Meleisea, wasn’t present today, House Speaker Savali Talavou Ale assigned the matter to the vice chairman.
