The money wouldn't be gone. Heritage Trst could hold onto some of the shares as part of the management and sell it down slowly. The cash returned would be invested elsewhere. At this point in time, closing rural branches is perfectly fine. It is propping up things and delaying the inevitable at this point. Yes having a banking centre is nice and all, but in the long term, it only adds costs to the government especially as most farms these days do use business banking at major centre branches anyway. It's not like ATB has a cost advantage compared to Big 6 banks. At the rate and with more competition on the horizon, ATB has lost it's mandate and reason to exist. While profitable, the return on equity and assets is poor compared to other banks.dmehus wrote: ↑ Maybe, but it's generally well run and maybe they get a one-time pop to the Heritage Trust Fund of maybe $3-5 billion? Then it's gone. Also, by privatizing it, you run the risk the new owners will aggressively consolidate branches and, worse, close rural branches. It's a profitable, well-run business. I think what they need to do is cut the management fat. They could probably pair their senior executive team in half. They really only need a CEO, a CFO, who doubles as CAO and Chief Human Resources Officer, a Head of Personal Banking & Wealth, a Head of Commercial Banking, a Chief Credit Officer, and a Chief Risk Officer. Other positions could report in to those senior executives as senior managers of subordinate units within each main department.
Cheers,
Doug
https://www.atb.com/siteassets/legacy/FY19Q3.pdf
I believe moving toward privatization similar to Petro Canada would be a better fit. Make ATB legislate under the bank act, become a CDIC member, create a shareholder structure, retain majority stake and move management over to AIMCo or elect a board independent from the Government. During that time, create low cost structures, electronic banking systems that can not only lower cost, but still service rural Alberta communities.
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