Capital G Bank Ltd’s president and CEO Ian Truran believes that Capital G Holding Company Ltd’s merger with First Bermuda Group Ltd. (FBG) will increase competition in the sector and boost the bank’s market share.Mr Truran, who was speaking in an interview with The Royal Gazette yesterday, said the amalgamation would enable the bank to expand its range of products and services and was in line with its five-year business plan.He added that the $100,000 fine imposed on FBG by the Bermuda Monetary Authority in August last year for breaching Anti-Money Laundering (AML) regulations was not a concern and the BMA would not have granted Capital G authority to enter into the deal if it had any issues with it.Mr Truran said that FBG handled the matter very well and it was a breach in procedure with no intent of money laundering. FBG became the first firm to be fined under the Authority’s enhanced enforcement powers under the Proceeds of Crime Regulations (Supervision and Enforcement) Act 2008, which allowed the regulator the ability to impose financial penalties on non-compliant organisations.The breaches related to weaknesses in internal controls, including customer due diligence and staff training on AML and anti-terrorist financing issues.On the issue of competition, Mr Truran said: “Increased competition is a good thing for us.“I think having a larger market share and being able to reach out to further develop the community banking services that we have today is a great thing and it is also in line with our business plan.“Competition is a good thing and our competitors should be aware of that and I look forward to the challenge.”Mr Truran said that the merger, which went through yesterday following approval from FBG shareholders, would mean no big changes in the first six months, with both entities operating independently in terms of client transactions, and FBG, as a wholly-owned subsidiary of Capital G Ltd., maintaining its brand until it becomes fully incorporated as Capital G Bank.He said that FBG clients would be introduced to a host of banking products and wealth management services available from Capital G Bank and would be opening a branch of the bank at FBG’s premises at 1 Church Street offering retail brokerage services.Mr Truran said that the bank would be identifying the needs of FBG’s customers and the offerings they can take advantage of as a result of the move, including savings and investment options, expanded credit facilities such as credit and debit cards, commercial and private banking and estate and trust services.On the flip side, he said that one of the most attractive features of the amalgamation was the deposit and loan products available from FBG were similar to those offered by Capital G Bank enabling a smoother transition process, while the bank would be looking to tap into a wider market for brokerage services outside of the high net worth it currently caters to.As far as personnel was concerned, Mr Truran said that the FBG employees would remain in their positions and senior management would report to Capital G Bank management.He said the merger fitted in perfectly with the bank’s five-year plan to grow its market share, but added that the biggest differentiator with the competition would continue to be its high level of service.The amalgamation, which was signed on December 21, 2010 and subsequently approved by the FBG shareholders on December 30, 2010, has created Bermuda’s largest privately-held full service bank and deposit taking company with combined deposits in excess of $1.4 billion, a loan portfolio of $970 million and a team of more than 200 employees.The move came just months after Permanent Investments Ltd., the owners of Bermuda Commercial Bank, announced their own agreement to take over FBG, but that agreement lapsed at the end of June, leaving the way clear for FBG to explore other avenues.