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Jules Vasquez reports that the now super-sized Belize Bank also takes over the lion's share of the market:

At 8:30 in the morning, Scotiabank would normally be open, but today it had up the "Closed" sign. That's because 150 staffers countrywide were in a virtual meeting with management who was giving them the news that the bank, their bank had a new owner, the guys from down the street, the Ashcroft Alliance, in this case, Caribbean Investment Holdings Limited - whose flagship is the Belize Bank.

The agreement was signed on Friday - and the regulator was notified.

A. Joy Grant, Governor - Central Bank
"The Central Bank has been notified officially of an Agreement for the acquisition of all the shares of Scotiabank (Belize) by Caribbean Investment Holdings Limited, the parent company of the Belize Bank Limited. This Agreement will, in effect, represent an eventual merger of these two domestic banking institutions."

A merger of Belize Bank and Scotia which will see one bank controlling 50% of the total assets in the commercial banking sector and almost three quarters of the actual net income of the banking sector.

Make no mistake it is a very big deal - and the end of an era for Scotia which has been in Belize since 1968, and currently has 9 branches and 21 ATMs.

A release from Ashcroft's Caribbean Investment Holdings says, quote, only the ownership of the company will change once the transaction closes and all employees will continue to support the business."

A. Joy Grant, Governor - Central Bank
"I want to assure the public that the Central Bank will endeavour to make the transition seamless. Scotiabank has assured that the buyer is committed to retain all current employees for at least one year after closing the transaction."

As the regulator, the Central Bank is undertaking a detailed legal, technical and operational review of this purchase agreement. Both parties have already tendered their assurances that Scotiabank Bank's customers, employees, as well as its financial footprint in Belize will be protected. Further, the acquisition process will not change the way customers currently use or access their accounts.

Scotiabank staffers have been told that they will keep their jobs for 12 months after the sales closes at, quote, a "comparable salary."

That closing will depend in part on the approval of the regulator, which should be no problem considering how the governor was singing the Ashcroft Alliance's praises today:

A. Joy Grant, Governor - Central Bank
"This significant investment and expansion by the Belize Bank represent a bold expression of confidence in the long-term potential of the economy. Such faith is praiseworthy, particularly during this period of global crisis."

And, as we face this global crisis Belize now loses its last international banking franchise with a strong correspondent banking relationship.

What it gains is a powerhouse Belize Bank with a perhaps unprecedented market share almost half of all the loans, assets and deposits in the banking sector.

Prior to the merger, Belize Bank held 27% of the assets in the commercial banking sector while Scotiabank held 23%.

Now, this new amalgamated bank, together with Atlantic Bank will hold a combined 85% of the total assets in the banking sector - effectively creating what would be called an oligopoly.

And while the Central Bank of Belize seems to be cheering on the sale, we note that last year in Guyana, the Central Bank there denied Scotiabank permission to sell its business to another bank, citing concerns about concentration and competition.