by Mindy Aguon
Guam - Calling it "a strategic move that would allow for expansion down the line", the Bank of Guam has submitted a request to the Federal Reserve System to approve BankGuam Holding Company to be its parent company. Bank of Guam president and chief executive officer Lou Leon Guerrero tells KUAM News the decision was made to create a bank holding company, of which Bank of Guam would be a subsidiary.
This would allow the Bank to be able to go into the market to get more capital and to establish the necessary infrastructure in the event the company wanted to acquire or merge with other banks or expand its non-banking business in the future.
The bank holding company would acquire 100% of the Bank of Guam's ownership shares. Leon Guerrero stresses that the bank is not being sold in any way. She explains that forming such a bank holding company is simply a chance to position their legal structure to be able to take opportunities as they come in the future that the bank currently cannot avail of.
The Federal Reserve Bank will accept comments on the application until June 13.