Doug Ashbury
Northern News Services

NNSL (Jan 25/99) - Come April 1, Iqaluit residents and businesses will have a third bank to chose from.

CIBC plans to take up temporary space in Iqaluit in the spring, with plans to be in a permanent home Sept. 1.

The financial institution has lease space just a stone's throw from the Bank of Montreal and the Royal Bank.

Kenn Lalonde, CIBC senior vice-president of personal and commercial banking for the Northwest Territories, Nunavut and Alberta, said with the launch of a new territory, it is important for CIBC to be there.

With the creation of Nunavut, "there is significant opportunity," he said.

One of those opportunities is to be the banker for the new Nunavut government. Currently, CIBC is the bank of the GNWT.

Some of CIBC's other Northern clients include the Northwest Territories Housing Corporation, about half the North's municipalities and several Inuit associations. Last Thursday, Bob Vardy, Nunavut deputy minister of finance and administration, said the new territory has not chosen a banker yet. The final decision may include more than one bank, he said.

"We have a proposal out for tendering (which closed Friday). We've had lots of questions from the banks," Vardy said.

There has been interest from all the major banks, he added.

Nunavut is expected to have a budget of over $600 million. The submissions will be reviewed in February, Vardy said.

GNWT Finance Minister John Todd said, "We are pleased that the CIBC shares our vision of the Northwest Territories and Nunavut as a place where profitable business opportunities exist, and they are willing to support the growing economy of Nunavut. They are to be congratulated."

Citing competitive reasons, Lalonde would not say how much of an investment is involved with making a move into Iqaluit. He also said the bank is currently attempting to secure temporary space.

"For over 130 years CIBC has been at the forefront of providing financial services to Canadian communities," Lalonde said.

CIBC's most recent donations include $25,000 to Stanton Regional Hospital to assist with the purchase of a new mammography machine and $10,000 to the Prospects North conference.

"From our humble beginnings in Yellowknife to today's modern facilities located in seven communities across the NWT and Nunavut, CIBC has been in more remote Northern communities than any other financial institution."

Iqaluit will join CIBC branches in Yellowknife, Inuvik, Hay River, Norman Wells, Fort Simpson and Rankin Inlet.

CIBC opened its first branch in 1938 in Yellowknife. Today, the bank employs 71 people in the North. The new CIBC branch will add eight people to that total.

When it comes to staffing the new Iqaluit branch, Lalonde said the goal is to employ local people.

And although a manager has not yet been named, it is believed the bank has its eye on an Iqaluit resident.

"Hiring locally will be a key to success," Lalonde said.

Initially, one CIBC bank machine will be on site. Today, there are six CIBC bank machines in the North.

As well, the CIBC will hold aboriginal business seminars in Iqaluit.