Cayman Islands Regulator Reassures Public Over Retail Banks

by Phillip Morton, Investors Offshore.com, London

21 October 2008

In light of the current international financial crisis, the Cayman Islands Monetary Authority (CIMA) has reassured the public that their retail banks are subject to "robust and strict regulatory oversight."

According to CIMA, in recent years the Islands' banks remained relatively conservative in their lending practices, with sub prime loans not a feature of their domestic banking system. This has led to minimal losses with the banks remaining liquid and well capitalised.

"The regulatory environment in which Cayman's retail banks operate is very strong and there is reason for confidence in the banking system," the regulator stated.

As a result of the international financial crisis, CIMA’s meetings with local banks have increased.

CIMA added that confidence remains high in the Island’s banks with capital position in excess of the minimum requirements.

Cayman's seven retail banks are: Cayman National Bank Ltd., Scotiabank & Trust (Cayman) Ltd., FirstCaribbean International Bank (Cayman) Limited, Fidelity Bank (Cayman) Limited, Butterfield Bank (Cayman) Limited, Royal Bank of Canada, and HSBC Bank (Cayman) Limited.

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