NATIONAL COMMERCIAL BANK (NCB) is closing its Trust and Merchant Bank because of new banking regulations, which require statutory assets and cash reserve requirements to be the same as for commercial banks.

NCB Group managing director Dunbar McFarlane said in a statement yesterday that as a result of the new regulations, "there is no longer any real advantage to maintaining our merchant bank", but the move meant it would be able to achieve improvements in efficiency and service in the commercial banking operations.

In a release yesterday in which Mr. McFarlane was quoted, NCB said its Trust and Merchant Bank would be ceasing operations as a separate entity and its core businesses would be absorbed in NCB Jamaica Limited.

Although it was not ascertained yesterday precisely when the Trust and Merchant Bank would cease operation, NCB said that under the new arrangement its trust services would be handled within the commercial bank's legal department and fixed deposits would be held at its branch at 54 King Street, Kingston pending transfer to branches chosen by account holders. Mortgages and other loans would be carried by the same King Street branch while registrar services would be undertaken by NCB Jamaica (Nominees) Limited at The Atrium, 32 Trafalgar Road, St. Andrew.

It was also not ascertained yesterday if staff of the Trust and Merchant Bank would be absorbed into the commercial banking operations or whether their posts would be made redundant.