BSP bid to purchase Westpac Vanuatu Ltd rejected

The Bank South Pacific’s bid to purchase Westpac Vanuatu Ltd. has been rejected by the Reserve Bank of Vanuatu.

A Westpac Group media release attributed the decision to continue operations in Vanuatu to timing: “Given the impact of cyclone Pam, now is not the time for a change of operators in the country’s banking sector.”

But independent sources confirmed that BSP’s application to purchase Westpac’s Vanuatu operations was rejected on technical grounds, and that BSP had not provided sufficient information to satisfy the assessment criteria.

The Reserve Bank of Vanuatu acts as regulator of the banking sector. It is responsible for issuing banking licenses and ensuring compliance with relevant legislation and regulation.

Westpac Vanuatu announced the intention to sell its operations to BSP in January.

BSP declined to comment, referring media questions to Westpac. Attempts to reach the office of the Governor of the Reserve Bank were unsuccessful.

Because the application was rejected on technical grounds, the Daily Post understands that there are no obstacles to BSP re-applying at any time in the future.

At the same time as it announced the outcome of the Vanuatu bid, Westpac confirmed that it had completed the sale of its banking operations in Cook Islands, Samoa and Tonga. An application by BSP to acquire Westpac’s Solomon Islands operations is currently being evaluated by the Central Bank.

These sales represent a strategic move by Westpac to divest itself of its Pacific Operations.

Source: 

PACNEWS