ANSA Merchant Bank Ltd (AMBL) plans to move its banking business into sister lender ANSA Bank Ltd and convert itself into a financial holding company, leaving ANSA Bank as the only licensed commercial bank in the ANSA McAL Group of Companies.

The Trinidad and Tobago Stock Exchange-listed bank announced the proposal on September 28. Provided shareholders and regulators sign off, the company is aiming to implement the change on January 1, 2027.

Under the plan, AMBL would be renamed ANSA Financial Holdings Ltd (AFHL) and serve as parent to ANSA Bank, ANSA Wealth Management Ltd, ANSA Financial Holdings (Barbados) Ltd, and Trinidad and Tobago Insurance Ltd (TATIL) and its subsidiaries.

The banking business would pass to ANSA Bank through statutory vesting under applicable law, covering the relevant assets, liabilities, rights, obligations and relationships. The company said customers and commercial partners do not need to do anything for now.

AMBL said a central holding company should tighten governance and oversight and bring more discipline to how capital and resources are allocated across the group. The wealth management, Barbados and insurance units would keep their existing structure and operations.

The move merges two entities that have run in parallel for five years. ANSA Bank opened to the public on April 6, 2021, after AMBL bought all the shares of Bank of Baroda (Trinidad and Tobago) Ltd. The Central Bank of Trinidad and Tobago approved that deal in December 2020.

AMBL chairman A. Norman Sabga said the merchant bank had served customers for nearly 50 years and that the new structure would position the group for a shifting financial services environment. Managing director Stephen Grell said the combination would let the two operations run as “one stronger, more focused bank.”

For shareholders, the vote will determine whether the listed entity becomes a holding company rather than an operating bank. ANSA McAL owned 82.5 per cent of AMBL at the time of the Bank of Baroda purchase.

The consolidated bank will compete in a domestic commercial banking market led by Republic Bank, RBC Royal Bank, First Citizens and Scotiabank.

AMBL said it will update shareholders, customers and other stakeholders as the approval and implementation process moves forward.