Banking Sector of the Cayman Islands

, updated 20 June 2017

The Cayman Islands is a self-governed overseas territory of the United Kingdom, with one of the highest per capita incomes in the Caribbean. The main areas of economic activity are financial services and tourism. Since 1960s, the Cayman Islands transformed itself into a significant offshore financial center and a major supplier of cross-border financial services, particularly in banking.

Structure of the Cayman Islands Banking Sector

The Cayman Islands banking and financial sector is very large. Financial and insurance services compise about one-third of GDP of the Cayman Islands. With its population of 60,413 in 2015 and 179 registered banks, there was 1 registered bank per roughly every 338 residents of the Cayman Islands. In 2015 consolidated banking assets more than 300 times exceeded GDP.

However, the number of banks has been steadily declining, especially following the financial crisis of 2007-2008. The banks have been terminating their licences in search of higher efficiency returns through consolidation and restructuring and due to changes in the international regulations requiring more information transparency. In March 2017 there were 158 banks operating in the Cayman Islands and 61 banks terminated their activities during the last three years.

Out of total 158 banks, only 18 banks are domestic Cayman banks, the rest 140 banks were foreign controlled banks (branches or subsidiaries) with head offices outside of the Cayman Islands - in the United States, Canada, elsewhere in the Caribbean, South America, Europe and Asia. Almost all largest European banks have presence in the Cayman Islands.

The Cayman Islands GDP at Current Prices (mln KYD)Geo Origin of the Cayman Islands Banks

Services Provided by the Cayman Islands Banks

Financial sector of the Cayman Islands is regulated and supervised by Cayman Islands Monetary Authority (CIMA).

Cayman Islands Monetary Authority issues two types of banking licences: Category A and Category B.

In March 2017, there were 11 banks holding Category A licence and hence allowed to provides banking services to local residents and non-domestic customers; there were also 147 banks holding Category B licence, providing only offshore banking services to corporations and individuals.

Number of Banks in the Cayman Islands

A licence of each category can be issued to perform only banking business or banking and trustee business; these terms are defined in "Banks and Trust Companies Law (2013 Revision)" as follows:

Banking Services

Category A banks serving local residents provide traditional retail, private and corporate solutions for all types of local customers.

However, Category B banks serving non-local customers are more focused on providing asset and wealth management, investment management products and services to high net worth individuals and families as well as business customers.

It should also be noted that branches of the United States banks hold funds overnight in sweep accounts in a way that is profitable as a result of the operation of the United States regulation.

Total Assets of The Cayman Islands Banks (mln USD)Deposits at The Cayman Islands Banks (mln USD)

Deposit Guarantee

There is no deposit guarantee scheme in the Cayman Islands. Taking into account the ratio of the bank deposit liability to the Cayman Islands GDP and the nature of most of those deposits, there is no solid reason to establish a deposit guarantee scheme with universal participation for all of the banks.

Trust Services

Trust business can be conducted by both Category A and Category B banks thus providing trust-related service to both domestic and international clients.

A trust is a legal arrangement when a trust settlor transfers its assets to a trustee who is legally entrusted to the trust assets (trust fund), not for his/her own benefit, but for the benefit of beneficiaries (who may include the settlor).

Compared to other legal forms designed to hold, preserve and transfer wealth, trusts have the main advantages of flexibility and confidentiality. Trusts are widely used for preservation of wealth, forced heirship, succession planning and asset protection. The Cayman Islands innovative legislation and absence of direct taxes have made it one of the most favourable destination for trusts.

Largest European Banks in the Cayman Islands

RankNameBanks in KY
1 BNP Paribas S.A.2 (2 operating, 0 closed)
2 Deutsche Bank AG2 (2 operating, 0 closed)
3 Credit Argicole S.A.1 (1 operating, 0 closed)
4 Société Générale1 (1 operating, 0 closed)
5 Barclays Bank plc1 (1 operating, 0 closed)
6 BPCE1 (1 operating, 0 closed)
7 The Royal Bank of Scotland plc1 (0 operating, 1 closed)
8 HSBC Bank plc2 (0 operating, 2 closed)
9 ING Bank NV0 (0 operating, 0 closed)
10 Credit Suisse AG1 (1 operating, 0 closed)
11 INTESA SANPAOLO S.P.A.1 (1 operating, 0 closed)
12 Coöperatieve Rabobank U.A.2 (0 operating, 2 closed)
13 Lloyds Bank Plc0 (0 operating, 0 closed)
14 Nordea Bank AB1 (0 operating, 1 closed)
15 Standard Chartered Bank0 (0 operating, 0 closed)
16 Commerzbank AG1 (1 operating, 0 closed)
17 Banco Santander, S.A.1 (1 operating, 0 closed)
18 Banque Fédérative du Crédit Mutuel0 (0 operating, 0 closed)
19 Banco Bilbao Vizcaya Argentaria, S.A.1 (1 operating, 0 closed)
20 UBS AG1 (1 operating, 0 closed)
21 ABN AMRO Bank NV0 (0 operating, 0 closed)
22 UniCredit SpA1 (0 operating, 1 closed)
23 CaixaBank, S.A0 (0 operating, 0 closed)
24 Danske Bank A/S0 (0 operating, 0 closed)
25 DNB BANK ASA1 (1 operating, 0 closed)
26 Landesbank Baden-Württemberg1 (0 operating, 1 closed)
27 KBC Bank NV1 (0 operating, 1 closed)
28 Bayerische Landesbank0 (0 operating, 0 closed)
29 Erste Group Bank AG1 (0 operating, 1 closed)
30 Allied Irish Banks, Public Limited Company1 (1 operating, 0 closed)
 

List of Banks Operating in the Cayman Islands

NameBank CategoryCountry of Origin
 Abbey National Treasury Services plcCategory B (Banking) Spain
 Alexandria Bancorp LimitedCategory B (Banking & Trust) Cayman Islands
 Alhambra Bank & Trust Limited (new)Category B (Banking & Trust) Cayman Islands
 Allied Irish Banks, Public Limited CompanyCategory B (Banking & Trust) Ireland
Altajir BankCategory B (Banking & Trust) Cayman Islands
 American Express Centurion BankCategory B (Banking) United States
Arab Banking Corporation (B.S.C)Category B (Banking) Libya
 Atlantic Security BankCategory B (Banking & Trust) Panama
 Australia and New Zealand Banking Group LimitedCategory B (Banking) Australia
 BAC International Bank (Grand Cayman)Category B (Banking & Trust) Panama
 Banco ABC Brasil S.A.Category B (Banking) Brazil
 Banco Bilbao Vizcaya Argentaria, S.A.Category B (Banking & Trust) Spain
 Banco BPI Cayman, Ltd.Category B (Banking & Trust) Portugal
 Banco BPI, S.A.Category B (Banking) Portugal
 Banco Bradesco S.A.Category B (Banking) Brazil
 Banco BTG Pactual S.A.Category B (Banking & Trust) Brazil
 Banco Colpatria Cayman Inc.Category B (Banking) Colombia
BANCO DAYCOVAL S.A.Category B (Banking) Brazil
 Banco de la Nacion ArgentinaCategory B (Banking) Argentina
 Banco do Brasil S.A.Category B (Banking) Brazil
 Banco do Estado do Rio Grande do Sul S.A.Category B (Banking) Brazil
Banco Fibra S.A.Category B (Banking & Trust) Brazil
 Banco General (Overseas), Inc.Category B (Banking) Panama
 Banco Indusval S.A.Category B (Banking) Brazil
 Banco Mercantil del Norte, S.A., Institucion de Banca Multiple, Grupo Financiero BanorteCategory B (Banking) Mexico
 Banco Mercantil do Brasil S.A.Category B (Banking) Brazil
Banco Modal S.A.Category B (Banking) Brazil
 Banco Morgan Stanley S.A.Category B (Banking) United States
 Banco Nacional de Comercio Exterior, SNCCategory B (Banking) Mexico
Banco Original S.A. (new)Category B (Banking) Brazil
 Banco Pine S.A.Category B (Banking) Brazil
 Banco Safra (Cayman Islands) LimitedCategory B (Banking) Brazil
 Banco Safra S.A.Category B (Banking) Brazil
 Banco Santander (Brasil) S.A.Category B (Banking) Spain
Banco Sofisa S.A.Category B (Banking) Brazil
 Banco Sumitomo Mitsui Brasileiro S.A.Category B (Banking) Japan
 Bancolombia CaymanCategory B (Banking) Colombia
 Bangkok Bank Public Company Limited (new)Category B (Banking) Cayman Islands
 Bank Espirito Santo (International) LimitedCategory B (Banking & Trust) Portugal
 Bank of America, National AssociationCategory B (Banking) United States
 Bank of Bermuda (Cayman) LimitedCategory B (Banking & Trust) United Kingdom
 Bank of China LimitedCategory B (Banking) China
 Bank of IndiaCategory B (Banking) India
 Barclays Bank PLCCategory B (Banking & Trust) United Kingdom
 BCP Finance Bank, Ltd.Category B (Banking) Portugal
 Bessemer Trust Company (Cayman) LimitedCategory B (Banking & Trust) United States
 BMG Bank (Cayman) LimitedCategory B (Banking) Netherlands
 BNP ParibasCategory B (Banking & Trust) France
 BNP Paribas Bank & Trust Cayman LimitedCategory B (Banking & Trust) France
 Branch Banking and Trust CompanyCategory B (Banking) United States
 Brasilian American Merchant BankCategory B (Banking & Trust) Brazil
 Brown Brothers Harriman & Co.Category B (Banking & Trust) United States
 Butterfield Bank (Cayman) LimitedCategory A (Banking & Trust) Bermuda
 Cainvest Bank and Trust LimitedCategory A (Banking) Cayman Islands
 Caixa Geral de Depositos, S.A.Category B (Banking) Portugal
 Canadian Imperial Bank of CommerceCategory B (Banking & Trust) Canada
 Capital One, National AssociationCategory B (Banking & Trust) United States
 Cayman National Bank Ltd.Category A (Banking & Trust) Cayman Islands
 China CITIC Bank International LimitedCategory B (Banking) Hong Kong
 China Construction Bank (Brasil) Banco Multiplo S/ACategory B (Banking) China
 CIBC Bank and Trust Company (Cayman) LimitedCategory A (Banking & Trust) Barbados
 CIBC Cayman Bank Limited (new)Category B (Banking) Barbados
CITCO Bank and Trust Company LimitedCategory B (Banking & Trust) Netherlands
 Citizens Bank of PennsylvaniaCategory B (Banking & Trust) United Kingdom
 Citizens Bank, National AssociationCategory B (Banking & Trust) United Kingdom
 Comerica BankCategory B (Banking & Trust) United States
 COMMERZBANK AKTIENGESELLSCHAFTCategory B (Banking) Germany
 Commonwealth Bank of AustraliaCategory B (Banking) Australia
 Credit Agricole Corporate and Investment BankCategory B (Banking) France
 Credit Industriel ET CommercialCategory B (Banking) France
 Credit Suisse AGCategory B (Banking & Trust) Switzerland
 Delta Bank and Trust Company, Grand CaymanCategory B (Banking & Trust) United States
 Deutsche Bank (Cayman) LimitedCategory A (Banking & Trust) Germany
 Deutsche Bank AktiengesellschaftCategory B (Banking) Germany
DMS Bank & Trust Ltd.Category B (Banking & Trust) Cayman Islands
 DNB Bank ASACategory B (Banking) Norway
 DZ Bank AG Deutsche Zentral Genossenschaftsbank, Frankfurt am MainCategory B (Banking) Germany
 EFG BankCategory B (Banking) Switzerland
 Fidelity Bank (Cayman) LimitedCategory A (Banking) Cayman Islands
 Fifth Third Bank (The)Category B (Banking & Trust) United States
 FirstCaribbean International Bank (Cayman) LimitedCategory A (Banking) Barbados
Givens Hall Bank & Trust LtdCategory B (Banking & Trust) Cayman Islands
Global Fidelity Bank, Ltd. (new)Category B (Banking) Cayman Islands
 GNB Sudameris Bank LimitedCategory B (Banking) Colombia
 Gulf International Bank B.S.C.Category B (Banking) Bahrain
 Haitong Banco de Investimento do Brasil S.A.Category B (Banking) China
Heritage Bank (new)Category B (Banking) Australia
 Hinduja Bank & Trust (Cayman) Ltd.Category B (Banking & Trust) Switzerland
 Industrial and Commercial Bank of China (Asia) LimitedCategory B (Banking) China
International Bank for CommerceCategory B (Banking) Cayman Islands
 Intesa Sanpaolo S.p.A.Category B (Banking) Italy
Itau Bank & Trust Cayman Ltd.Category B (Banking & Trust) Brazil
Itau Bank, Ltd.Category B (Banking & Trust) Brazil
Itau Unibanco Holding S.A.Category B (Banking) Brazil
ITAU UNIBANCO S.A.Category B (Banking) Brazil
 J.P. Morgan Trust Company (Cayman) LimitedCategory B (Banking & Trust) United States
 Kasikornbank Public Company LimitedCategory B (Banking) Thailand
 Krung Thai Bank Public Company LimitedCategory B (Banking) Thailand
 Landesbank Hessen-Thuringen GirozentraleCategory B (Banking) Germany
 LGT Bank (Cayman) Ltd.Category B (Banking & Trust) Liechtenstein
 Manufacturers and Traders Trust CompanyCategory B (Banking) United States
Mercantil Bank and Trust Limited (Cayman)Category B (Banking & Trust) Venezuela
 Merrill Lynch Bank and Trust Company (Cayman) LimitedCategory A (Banking & Trust) United States
 Millennium bcp Bank & TrustCategory B (Banking & Trust) Portugal
 Mizuho Bank, Ltd.Category B (Banking) Japan
 Mizuho do Brasil Cayman LimitedCategory B (Banking) Japan
Morval Bank & Trust Cayman Ltd.Category B (Banking & Trust) Switzerland
 MUFG Alternative Fund Services (Cayman) LimitedCategory A (Banking & Trust) Japan
 MUFG Union Bank, National AssociationCategory B (Banking & Trust) United States
 Multibank Cayman Inc.Category B (Banking) Panama
 Nacional Financiera S.N.C.Category B (Banking) Mexico
 National Australia Bank LimitedCategory B (Banking) Australia
 National Bank of Kuwait, Societe Anonyme Kuwaitienne PubliqueCategory B (Banking) Kuwait
 NATIXISCategory B (Banking) France
 NCB (Cayman) LimitedCategory B (Banking & Trust) Cayman Islands
 Northern Trust Company (The)Category B (Banking & Trust) United States
 Novo Banco, S.A. (new)Category B (Banking) Portugal
 Popular Bank Llc, CaymanCategory B (Banking & Trust) Panama
 PT Bank Rakyat Indonesia (Pesero) TBKCategory B (Banking) Indonesia
 PT. BANK MANDIRI (PERSERO) TbkCategory B (Banking) Indonesia
 Queensgate Bank and Trust Company Ltd.Category B (Banking) Cayman Islands
 RBC Royal Bank (Cayman) LimitedCategory A (Banking) Canada
 Regions BankCategory B (Banking) United States
 Republic Bank (Cayman) LimitedCategory B (Banking & Trust) Trinidad and Tobago
 Royal Bank of CanadaCategory B (Banking) Canada
 Sackville Bank and Trust Company LimitedCategory B (Banking) Cayman Islands
 Santander Bank, National AssociationCategory B (Banking) Spain
 Scotiabank & Trust (Cayman) LtdCategory A (Banking & Trust) Canada
 Scotiabank Inverlat S.A.Category B (Banking) Canada
 Silicon Valley BankCategory B (Banking) United States
 Skandinaviska Enskilda BankenCategory B (Banking) Sweden
 Societe GeneraleCategory B (Banking) France
 St. Georges Bank & Trust Company (Cayman) Ltd.Category B (Banking) Cayman Islands
 State Street Bank and Trust CompanyCategory B (Banking) United States
 Sumitomo Mitsui Banking CorporationCategory B (Banking) Japan
 Sumitomo Mitsui Trust Bank (U.S.A.) LimitedCategory B (Banking & Trust) Japan
 SunTrust BankCategory B (Banking & Trust) United States
 Svenska HandelsbankenCategory B (Banking) Sweden
 Thanachart Bank Public Company LimitedCategory B (Banking) Thailand
 The Bank of New York MellonCategory B (Banking & Trust) United States
 The Bank of Nova ScotiaCategory B (Banking) Canada
 The Bank of Tokyo-Mitsubishi UFJ, Ltd.Category B (Banking) Japan
 The National Bank of IndianapolisCategory B (Banking) United States
 The Siam Commercial Bank Public Company LimitedCategory B (Banking) Thailand
 TMB Bank Public Company LimitedCategory B (Banking) Thailand
 Toronto - Dominion Bank (The)Category B (Banking) Canada
 Towerbank, LtdCategory B (Banking & Trust) Panama
Trade and Commerce BankCategory B (Banking) Cayman Islands
 Trident Trust Company (Cayman) LimitedCategory B (Banking & Trust) Cayman Islands
 U.S. Bank National AssociationCategory B (Banking & Trust) United States
 UBS AGCategory B (Banking & Trust) Switzerland
 United Bank for Africa PlcCategory B (Banking & Trust) Niger
VBT Bank & Trust, Ltd.Category B (Banking & Trust) Cayman Islands
 Venezolano De Credito, S.A., Banco UniversalCategory B (Banking) Venezuela
 Webster Bank, National AssociationCategory B (Banking) United States
 Wells Fargo Bank, National AssociationCategory B (Banking) United States
 Westpac Banking CorporationCategory B (Banking) Australia
 Wing Lung Bank Ltd.Category B (Banking) Hong Kong
 

List of Recently Closed Banks in the Cayman Islands

NameBank CategoryCountry of Origin
 Amegy Bank National Association (closed)Category B (Banking) United States
 Banco de la Provincia de Buenos Aires (closed)Category B (Banking & Trust) Argentina
 Banco Espirito Santo, S.A. (closed)Category B (Banking) Portugal
 Banco Finantia International Limited (closed)Category B (Banking) Portugal
 Banco Inbursa S.A., Institucion de Banca Multiple Grupo Financiero Inbursa (closed)Category B (Banking & Trust) Mexico
 Banco Rabobank International Brasil S.A. (closed)Category B (Banking) Netherlands
Bancredit Cayman Limited (closed)Category B (Banking) Cayman Islands
 Bank Hapoalim (Cayman) Limited (closed)Category B (Banking & Trust) Israel
 Bank Leumi Le Israel B.M. (closed)Category B (Banking & Trust) Israel
 Bank of Ayudhya Public Company Limited (closed)Category B (Banking) Thailand
 Bank of Oklahoma N.A. (closed)Category B (Banking) United States
 Bank of Scotland plc (closed)Category B (Banking) United Kingdom
 Bank of the West (closed)Category B (Banking) France
 Barclays Private Bank & Trust (Cayman) Limited (closed)Category B (Banking & Trust) United Kingdom
 BIC International Bank Limited (closed)Category B (Banking) Portugal
 BNP Paribas Fortis (closed)Category B (Banking) France
 BNY Mellon Trust Company (Cayman) Limited (closed)Category B (Banking & Trust) United States
 Cainvest International Bank Ltd. (closed)Category B (Banking) Cayman Islands
 Caixa Economica Montepio Geral (closed)Category B (Banking) Portugal
 Caledonian Bank Limited (closed)Category A (Banking) Cayman Islands
 Chase Bank USA, National Association (closed)Category B (Banking) United States
 CITITRUST (CAYMAN) LIMITED (closed)Category B (Banking & Trust) United States
 Cititrust Private Trust (Cayman) Limited (closed)Category B (Banking & Trust) United States
 Compass Bank (closed)Category B (Banking) Spain
 Erste Group Bank AG (closed)Category B (Banking & Trust) Austria
 First Hawaiian Bank (closed)Category B (Banking) United States
 First Regents Bank & Trust (Cayman) Ltd. (closed)Category B (Banking & Trust) Cayman Islands
Helm Bank Cayman (closed)Category B (Banking & Trust) Cayman Islands
 HSBC Bank (Cayman) Limited (closed)Category A (Banking & Trust) United Kingdom
 HSBC Bank Brasil S.A. - Banco Multiplo (closed)Category B (Banking) United Kingdom
 HSH Nordbank AG (closed)Category B (Banking) Germany
 Huntington National Bank (The) (closed)Category B (Banking & Trust) United States
 Israel Discount Bank of New York (closed)Category B (Banking & Trust) United States
 ITA Bank and Trust Company Ltd. (closed)Category B (Banking & Trust) Cayman Islands
 KBC Bank N.V. (closed)Category B (Banking & Trust) Belgium
KeyBank National Association (closed)Category B (Banking) United States
 Landesbank Baden-Württemberg (closed)Category B (Banking) Germany
 Mitsubishi UFJ Trust and Banking Corporation (closed)Category B (Banking) Japan
 Mizrahi Tefahot Bank Ltd. (closed)Category B (Banking) Israel
 Mizuho Trust & Banking Co. (USA) (closed)Category B (Banking) Japan
 National Bank of Egypt (closed)Category B (Banking) Egypt
 Norddeutsche Landesbank Girozentrale (closed)Category B (Banking) Germany
 Nordea Bank Finland Plc (closed)Category B (Banking) Sweden
 P.T. Bank Pan Indonesia TBK (closed)Category B (Banking) Indonesia
 Pictet Bank and Trust (Cayman) Ltd (closed)Category B (Banking & Trust) Switzerland
 Portigon AG (closed)Category B (Banking & Trust) Germany
 Rabobank Nederland (closed)Category B (Banking) Netherlands
 Royal Bank of Canada Trust Company (Cayman) Limited (closed)Category A (Banking & Trust) Canada
 Saad International Bank Limited (closed)Category B (Banking) Saudi Arabia
 Saadgroup Financial Services Company Limited (closed)Category B (Banking) Saudi Arabia
 Schroder Cayman Bank and Trust Company Limited (closed)Category B (Banking & Trust) United Kingdom
Serfin International Bank & Trust (closed)Category B (Banking & Trust) Cayman Islands
 Swedbank AB (closed)Category B (Banking) Sweden
 TD Bank, National Association (closed)Category B (Banking & Trust) Canada
 Texas Capital Bank, National Association (closed)Category B (Banking) United States
The Dundee Merchant Bank (closed)Category B (Banking & Trust) Cayman Islands
 The Royal Bank of Scotland N.V. (closed)Category B (Banking) United Kingdom
 UniCredit Bank AG (closed)Category B (Banking & Trust) Italy
 Whitney Bank (closed)Category B (Banking) United States
 Wing Hang Bank (Cayman) Ltd (closed)Category B (Banking & Trust) Singapore
 Zions First National Bank (closed)Category B (Banking & Trust) United States
 

See Also

Economy and Banking Sector of the Cayman Islands

List of Banks in Cayman Islands

External Links

  1. Cayman Islands Monetary Authority
  2. Cayman Islands Financial Services
  3. Economics and Statistics Office, Government of the Cayman Islands