Prime Minister Gaston Browne of Antigua and Barbuda has revealed that one or two offshore banks in the country may face liquidation due to persistent difficulties in maintaining correspondent banking relationships. Speaking on the Browne and Browne Show on Pointe FM, Browne highlighted that these institutions have struggled to secure or retain international correspondent partners, which are essential for processing cross-border transactions. This challenge has been exacerbated by increasingly stringent global banking regulations. Browne emphasized that the issue is not isolated to Antigua and Barbuda but is part of a broader trend affecting small financial centers worldwide, a phenomenon often referred to as ‘de-risking.’ The government is closely monitoring the situation and collaborating with the Financial Services Regulatory Commission (FSRC) to safeguard depositors and ensure compliance with international standards. Despite these challenges, Browne reassured that the domestic banking system remains stable, with local banks maintaining robust correspondent relationships and strong liquidity positions. The prime minister reiterated the country’s commitment to upholding the integrity of its financial sector while navigating these global pressures.
PM Browne: One or two offshore banks may end up being placed under liquidation
