Port of Spain, Trinidad, October 9, 2007: Republic Bank has sold its business operations in the Dominican Republic to Banco BHD, following receipt of the relevant approvals from the Monetary Authorities in that country.  The transaction involved the sale and transfer of Republic’s loan assets and deposit liabilities to Banco BHD, and became effective on October 5, 2007. The decision to transact with Banco BHD followed a bidding process involving several other banks in the Dominican Republic.

Since Republic Bank’s acquisition of the failed Banco Mercantil in October 2003, Republic has implemented a number of measures in attempts to return the failed institution to profitability.  Included in these measures was the sale of the Consumer Banking and Credit Card operations to Banco BHD in September 2006, leaving the bank to concentrate exclusively on corporate business. While this corporate banking model had been showing signs of success, there were concentration and earnings risks inherent in it, with which the Executive Management and Board of Directors of Republic Bank DR had not been comfortable.  These risks were the primary drivers in the Bank’s decision to sell the business and close its operations in the Dominican Republic.

Having sold the business operations, Republic Bank will now be making a formal application to the DR Monetary Authorities to wind-up the remaining operations and dissolve the Bank.