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Pending approval from the Central Bank, it will create a very large bank controlling about half of the market. But, is it a good deal for Belize? And for Scotiabank customers? That's what we asked the former Governor of the Central Bank Glen Ysaguirre today. He said mergers can go either way for the market, but the regulator has to do all it can to make sure the confidence of the public in their trusted, old bank is not shaken:

Glen Ysaguirre - Former Governor, Central Bank (2008-2016)
"Mergers can be one of two things. Acquisitions and mergers can have significant pay-offs or they can introduce significant peril. And it all depends on how you manage it. What will be key during the process, of course, one of the things that I, as a regulator, would be looking at, what will the new entity look like after the merger? How will it be managed and how will the regulator handle it given the size and the enormity of what it will be? How will the public react to it? Normally with mergers and acquisitions, public reaction is normally emotional in the initial stages. And their reaction to it can determine whether or not the anticipated pay-off for the acquiring bank will be realized. That is why I am saying their communication plan for the general public has to be very responsive and quick to address any of these concerns and sensitivities. Because the reality is that banking is a relationship. So, naturally, having been in the country from 1968 or much earlier people have been life long customers so they get a sense of betrayal when you are just pulling out and that kind of thing. And that's where the emotion comes in. They are not looking at the business aspect of it. So, the acquiring bank will have to commit and dedicate some resources to make sure that the transition is seamless and to make sure that people don't suffer any angst about their new services and their new relationship."

Jules Vasquez- Reporter
"The Central Bank, in its release and the statement from the Governor has praised that the "significant investment and expansion represents a bold expression of confidence in the long term potential of the economy. Such faith is praise worthy." It seems, my interpretation, is that the Central Bank as regulator, perhaps should not be cheer leading when it still has its work to do. I know you don't want to speak ill of your successor but what was your reaction when you heard this cheerful blessing almost of the transition?"

Glen Ysaguirre
"Well, one would want to think that something would not be given easily if the regulator is not totally satisfied that the entities involved are capable of conducting this transaction without disrupting the stability of the system. Maybe it was an attempt to address any public anxiety that may be there about such a change. But it is something that I think is necessary for the regulator to give assurances to the public in that regard."

That's just part one of an extended, opinionated conversation with the former governor. We'll have his analysis of the merger and acquisition in part two of our interview tomorrow.