(Grand Cayman, Monday, 13 October 2008) In light of the current international financial crisis, the Cayman Islands Monetary Authority (CIMA) wishes the Cayman public to be aware that local retail banks are subject to robust regulatory oversight.
Local retail banks have always been required to report to CIMA on an ongoing basis. CIMA and the retail banks are meeting regularly and the banks are providing reports on their financial position to CIMA on an even more frequent basis.
The regulatory environment in which Cayman’s retail banks operate is very strong and there is reason for confidence in the banking system. The banks’ capital position is in excess of the minimum requirements. Over the years they have had relatively conservative lending practices and sub-prime loans have not been a feature of the Cayman Islands’ domestic banking system.
CIMA’s current data shows that loan losses to date have been very low and the banks remain liquid and well capitalised.
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.