Cayman Banks Agree New Code Of Conduct

by Phillip Morton, Investors Offshore.com

03 August 2007

The Cayman Islands Bankers Association (CIBA) in conjunction with all of the retail banks in the jurisdiction has announced the launch of a new Banking Code.

The code is voluntary and sets standards of good banking practice in the Cayman Islands. It explains how banking institutions subscribing to the code and their staff are expected to deal with customers.

"We are very pleased to introduce this voluntary code, which encourages higher standards for the benefit of customers through competition and market forces", said Mr. Conor O'Dea, President of CIBA.

The new code covers 16 areas impacting the interaction between customers and their banks. These include interest rates and charges, complaints and how the banks can assist when a customer has financial difficulties.

Local regulators welcomed the new code, hailing it as an improvement to local banking standards and encouraging all banks to adopt it.

"We are pleased to see this code of conduct come to fruition. The code is expected to raise the standards of banking service in the Cayman Islands, while simultaneously placing renewed focus on the value of high levels of customer satisfaction to individual institutions as well as the jurisdiction. We look forward to its adoption by all members of the Banking community", said Mr Malcolm Eden, Head of Banking Supervision of the Cayman Islands Monetary Authority.

"CIMA welcomes the development of this voluntary code of conduct by CIBA. We urge all banks, particularly those engaged in retail banking in Cayman, to adopt and fully implement this code as soon as possible", said Mr. Tim Ridley, Chairman of the Cayman Islands Monetary Authority.

Mr O'Dea explained that CIBA had been working on the code for some time and praised the efforts of all members of the special committee that worked on developing the new document.

"In many ways this code formalises the practices that we have had working within the local banking sector over the years. We have also taken the opportunity to improve the information flow as well as guidance to all existing and potential banking customers", said Mr O'Dea.

All of Cayman's current retail banking community have agreed to adopt and implement the code including Butterfield Bank, Cayman National Bank, Fidelity Bank, First Caribbean International Bank, HSBC, Royal Bank of Canada and Scotiabank & Trust. The Code of Conduct will be made available at participating branches as well as on the banks' websites.

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