Banks in Cayman Islands

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Overview of Banks in Cayman Islands

As per Moody’s Investors Service, the banking system in the Cayman Islands is quite stable. There are a few reasons behind that –

  • The institutional framework and sound macroeconomic policies allow the economy of the Cayman Islands to remain stable.
  • The debt burden of the government is comparatively lower.
  • The per capita income is quite high, which prevents the Cayman Islands from any weather-related shock.
  • The fiscal oversight of the UK also has kept the Cayman Islands sound in economic matters.

Since the income is pretty high and the debt is tepid, it's expected that the rating of Moody's Investors Service would remain similar shortly as well.

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Structure of Banks in the Cayman Islands

There are a total of 158 banks in the Cayman Islands. Out of these huge numbers of banks, most banks are subsidiaries of foreign banks. The Cayman Islands is also considered one of the leading financial centers in the world. Around the US $80 billion deposits are being booked through the banks situated in the Cayman Islands.

The Cayman Islands Monetary Authority issues mainly the following licenses (in regards to banking) as per the Banks and Trust Companies Law –

  • “Category A” banking license: This license allows the banks to both operate in local and international territories. At the same time, these banks have the right to provide services to local and international customers. Only 11 banks are given the “Category A” banking license in the Cayman Islands.
  • “Category B” banking license: This license allows the banks to provide international banking services only to non-residents of the territory and offer domestic banking services only to territory residents. The rest (around 147 banks) are offered a “Category B” banking license.

List of Top 10 Banks in the Cayman Islands

  1. Cayman National Bank
  2. Cainvest Bank and Trust Limited
  3. Merrill Lynch Bank and Trust Company (Cayman) Ltd.
  4. Fidelity Bank (Cayman) Ltd
  5. Alexandria Bancorp Ltd.
  6. Trident Trust Company (Cayman) Ltd.
  7. Alhambra Bank & Trust Ltd.
  8. VBT Bank & Trust Ltd.
  9. Sackville Bank and Trust Company Ltd.
  10. Queensgate Bank and Trust Company Ltd.

Let's see each one of them in detail -

Banks in Cayman Islands

#1. Cayman National Bank

Cayman National Bank has received a "Category A" banking license. The head-quarter of this bank is located in Grand Cayman. It was established in 1974, around 43 years ago. It has provided financial products and services like investment services, online banking, premier banking, and fund management. At the end of 2019, the total assets acquired by Cayman National Bank were KYD 1.44 billion. In the same year, the bank's total income was KYD 24.6 million.

#2. Cainvest Bank and Trust Limited

It is comparatively a new bank in the Cayman Islands. It has received a "Category A" banking license. In 1994, this bank purchased Intertrust Bank (Cayman) Limited, and Cainvest International Bank Limited was created. Later, in 2015, changed the name to Cainvest Bank and Trust Limited. The head-quarter of this bank is located in George Town. This bank provides private banking and investment products and services to local and international customers. They also have a presence in Brazil, Uruguay, and Argentina.

#3. Merrill Lynch Bank and Trust Company (Cayman) Ltd.

It has received a “Category A” banking license. This bank is popular for running operations in banking and in trust-related issues. Merrill Lynch Bank and Trust Company (Cayman) Ltd. also helps the affiliates of these trusts (who can be high net-worth individuals, client corporations, financial institutions, etc.). This bank also offers many banking products and services like secured loans, foreign exchange transactions, deposits from high net-worth individuals, etc.

#4. Fidelity Bank (Cayman) Ltd.

It also holds a “Category A” banking license. This bank was established in the year 1980, around 37 years ago. Fidelity Bank (Cayman) Ltd. is one of the most comprehensive financial institutions in the Cayman Islands. It serves all sorts of customers – from local to international customers. It provides a broad range of financial products and services like insurance, international banking, etc. It also holds a "Category A" banking license.

#5. Alexandria Bancorp Ltd.

It holds a “Category B” banking license. It was founded in the year 1990, around 27 years ago. It is one of the most significant foreign banks in the Cayman Islands. Alexandria Bancorp Ltd. is kind because it can provide both banking and trustee services to foreign clients. The focus of Alexandria Bancorp Ltd. is on corporate & trust services, private banking, and wealth management.

#6. Trident Trust Company (Cayman) Ltd.

Trident Trust Company (Cayman) Ltd. holds a “Category B” banking license. It mainly serves accounting firms, brokerage firms, law firms, high net-worth individuals, and other banks. It has employed around 800 people. It has a global reach and a presence in Asia, America, Africa, the Caribbean, the Middle East, and Europe. It is one of the leading financial institutions in the Cayman Islands, and it also offers corporate formation, administration, and fiduciary services.

#7. Alhambra Bank & Trust Ltd.

This bank holds a “Category B” banking license. It was recently established in the year 2014, just three years ago. It offers a broader range of financial and investment services. Its main focus is high net-worth individuals who can deposit a huge sum into the bank's accounts. Alhambra Bank & Trust Ltd. provides services to non-US residents, and they have set the minimum deposit money for high net-worth individuals to be US $1 million.

#8. VBT Bank & Trust Ltd.

This bank holds a license of “Category B” banking. It is a noteworthy member of the Cayman Islands Stock Exchange. It is the wholly-owned subsidiary of VBT Holdings Ltd. After acquiring Venecredit International Banking Ltd. in 1998, this bank was named Venecredit Bank & Trust Ltd. In 2012, this bank changed its name from Venecredit Bank & Trust Ltd. to VBT Bank & Trust Ltd.

#9. Sackville Bank and Trust Company Ltd.

This is a private boutique bank. It is one of the noteworthy boutique banks in the Cayman Islands which provides fiduciary services for trust and corporate structures. It also offers strategic investment solutions and custodial services. It is also an independent bank.

#10. Queensgate Bank and Trust Company Ltd.

The main focus of Queensgate Bank and Trust Company Ltd. is to offer banking services, investment funds, trust & company administration, and accounting. This bank also holds a "Category B" banking license. It was established in the year 1990, around 27 years ago. This bank is a member of the Ugland Group of Norway.