Bank assets reach $571M

In what appears to be a sign of strong financial infrastructure in the Northern Marianas, bank assets have reached over $571 million during the third quarter of last year, according to a report prepared by the Department of Commerce.

Total deposits amounted to $555 million during the third quarter of 1999, slightly up from the previous quarter’s $554 million. The 1999 Quarterly Bank Report noted that deposits during the first three months of last year reached $529 million.

Savings deposit from both the government and the private sector dropped from $203 million during the second quarter of last year to $191 million the following year. First quarter deposits totaled $204 million.

The commerce department quarterly report also noted that interest income edged up from $12.3 million during the second quarter to $18.4 million the following period.

For the sixth straight year since 1994, bank assets have been climbing steadily, with the biggest growth recorded in 1996 at $507.7 million, or 16.2 percent, compared to previous year’s tally.

The banking industry hit the half-a-billion mark in 1996, making it one of the healthiest sectors after garment manufacturing and tourism. The travel sector used to the be commonwealth’s lifeblood but had been crippled by the financial upheavals in Asia.

The banking industry has continued to show promise in light of the worsening business climate on the islands, particularly with slowdown in garment production and visitor arrivals.

The CNMI is home to 10 banks — nine are in operation with physical facilities and locations while two were licensed and are operating via their resident agents.

By end-1998, commercial and savings banks in the CNMI registered about $522 million in total deposits, up from the 1997 figure of $481.1 million.

A government banking specialist said bank assets have, in fact, been going up since 1994. He said the increase could be sign of a strong banking infrastructure in the Northern Marianas.

The increase may also be attributed to the opening of two major banks — Hong Kong and Shanghai Banking Corp. and First Hawaiian Bank — in 1998.

The strong banking infrastructure in the CNMI is flourishing the financial resources of the Commonwealth to help businesses make it through the current economic upheavals.