While calling UBS Bahamas' decision to close its banking operations down later this year "unfortunate", Financial Services Minister Ryan Pinder said this is not "endemic" of the industry.
In an interview with Guardian Business yesterday, Pinder said the financial services sector has seen growth in other banks.
"By nature, it's a volatile industry and due to the changes in the global environment. Some institutions fit better especially using The Bahamas platform than others. So we do see growth in those institutions that are successfully using The Bahamas' platform for their business model," he explained.
"It's a shame that UBS on the bank side has made the decision that it is not the case for them from a business point of view. But we are encouraged that they still look to grow on the trust, funds and services side of the business."
Though expressing some concern about redundancies at UBS, Pinder pledged the government's commitment to working with UBS' executives to ensure that not only is the transition as smooth as possible, but also that opportunities are created for those employees.
"UBS, on the bank side, has had its challenges over the course of the years and certainly we never like to see an institution phased out of a business line in the jurisdiction," said the financial services minister.
"But we see growth with respect to other banks in implementing their strategies. I met with an institution this afternoon [Thursday], who in the last six months has grown its head count by 15 percent. And they look to grow it by another seven to eight percent over the next six months.
"It's those institutions that we look to coordinate with, to ensure that any Bahamian bankers that are becoming redundant may have opportunities to work in other institutions. We have that cooperation in place."
Pinder revealed that he met with top UBS executives to discuss the latest developments and at that time, plans were unveiled to increase the trust side of the business. It's an area where growth is anticipated.
"They are increasing their head count as they transfer some from the bank over to that section, so we look for them to grow there," he said to Guardian Business.
"You're always concerned about redundancies in such an operation. We've spoken with UBS and we have their commitment and cooperation to ensure that those that are made redundant receive fair compensation. With the process underway, the government and UBS will work together to ensure that opportunities that might exist in the industry for employment are facilitated for those that have been redundant from UBS, so that cooperation has been agreed upon."

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