Lemanu assures he is working to solve the problem of no insured banking facility

Pago Pago, AMERICAN SAMOA — The Lemanu- Talauega Administration is on a mission to ensure that American Samoa will have either an FDIC insured or National Credit Union Administration bank.

In his written speech distributed during the opening of the 4th Regular Session of the 37th Legislature this week, Lemanu said ANZ Guam, Inc. is ceasing operations in the territory by the end of September, and this will “temporarily” leave American Samoa without a federally insured depository institution.

 “I have chosen not to ask ANZ Guam to extend its stay, because it has become clear that ANZ Guam started winding down its operations here long before it announced its departure. ANZ’s recent loan activity here has been minimal, and it is no longer a significant factor in our economy.

“So I have decided that it would be better to focus on the future rather than cling to the past.

It's important to note that ANZ is not just leaving American Samoa; it is leaving the retail banking market in the U.S entirely, the governor noted.

The bank found that its Australia-based systems, which it has long used to support its successful operations throughout the Pacific, could not be used in the U.S because the federal regulators would not permit it. So ANZ had to create duplicate systems for its U.S operations, and this proved to be inefficient and uneconomical, the governor wrote.

Adding that ANZ’s departure is an ANZ issue, not an American Samoa issue.

However, Lemanu pointed out ANZ’s operations in Samoa, which has the same cultural and land issues are quite successful.

 And he added that that is because they do not have to create duplicate systems there to comply with U.S regulations.

“I want you to know that my team is doing everything in its power to ensure that American Samoa will have a federally insured--FDIC insured or NCUA insured, depositary institution operating here as soon as reasonably possible.

“I cannot yet publicly disclose everything that we’re doing, because other parties are involved and we must respect their need for confidentiality at this stage.

“But suffice it to say that we are actively pursuing a multi-track plan of action that includes, but is not limited to, enlisting the support of the federal government,” the governor said.

Lemanu concluded his speech by commending Congresswoman Uifa’atali Amata for her support in this regard.

 “We will have more to report to you in due course. And in the meantime, we will continue to support the Territorial Bank of American Samoa and help ensure that they can continue to meet the banking needs of our people.”

BACKGROUND

As reported earlier, the Community Bank of American Samoa issued a statement expressing a strong desire to purchase the Territorial Bank of American Samoa citing that with the departure of ANZ, for the first time in fifty years, American Samoa will have no FDIC insured bank.

The CBAS was initially formed more than ten years ago, in efforts to purchase Bank of Hawaii’s operation in the territory, however the bank decided to close instead of selling.

Earlier this month Lieutenant Governor Talauega Eleasalo Ale said “there has been no real interest in buying TBAS and while there are indications by the Community Bank to explore but there hasn’t been any real offers of purchase.”

As stated earlier they will continue to work with the Community Bank folks who are on island and off island to make sure that they explore the viability of the interests from their group to acquire the bank or pieces of the bank.

 “But like I said, the Governor is very concerned about the investments that the people of American Samoa have already put into this institution and we're also concerned about what happened to the Amerika Samoa Bank that was purchased by a foreign bank and  now they're leaving us.

“These are all difficult issues that need to be considered,” said Talauega.

 “And also the interest securing FDIC coverage is a process that is long and it's also very expensive; so securing the first bond to get into the bank as it is — it is a very expensive proposition.

 “And at this moment it is not clear that the Community Bank or any other locals’ interests have that funding to secure that,” said Talauega.