Until the Territorial Bank of American Samoa becomes a fully operational bank offering a suite of professional services, Bank of Hawaii is committed to remain in the territory.
At a House of Representatives hearing yesterday on a bill authorizing TBAS to provide trust services, a member of the TBAS Board and governor’s Chief Legal Counsel Steve Watson was asked when Bank of Hawaii will leave the territory.
Watson said Bank of Hawaii has committed to remaining here until TBAS or another bank can be fully operational.
This would require TBAS to have a transit routing number and provide a full suite of banking services.
TBAS has been working on acquiring a routing number since it opened last year.
When he was in Washington DC early this year for official business, Governor Lolo Moliga met with the Federal Reserve Board to request assistance in obtaining a routing number for the government bank.
The FED’s main concern is the involvement of a government entity in the financial institution especially with a government appointed board, overseeing the bank.
Watson told the House hearing that only after Bank of Hawaii is satisfied that TBAS is fully functional will it make plans to withdraw.
He said BOH is required to provide a 90-day notice prior to closing down.
Before that happens, Watson said TBAS hopes to have trained staff to open a second TBAS branch where BOH is now.
Up to now, TBAS doesn’t have a corresponding bank.
Watson said BOH has not offered to provide corresponding bank services for TBAS but has been helpful in that it turned over all furniture, equipment and the BOH building as well as the manager’s residence at Gataivai.
Rep. Faimealelei Anthony Allen asked Watson if TBAS was operating at a loss or profit.
Watson said the bank is operating at a loss and the bill now before the Fono to authorize the government bank to offer trust services , would help provide another revenue source for TBAS,
