Banking Sector of the Cayman Islands

30 May 2016, 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 149 banks operating in the Cayman Islands and 70 banks terminated their activities during the last three years.

Out of total 149 banks, only 17 banks are domestic Cayman banks, the rest 132 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
1BNP Paribas S.A.2 (2 operating, 0 closed)
2Credit Argicole S.A.1 (0 operating, 1 closed)
3Deutsche Bank AG2 (2 operating, 0 closed)
4Société Générale1 (1 operating, 0 closed)
5BPCE1 (1 operating, 0 closed)
6Barclays Bank plc1 (1 operating, 0 closed)
7ING Bank NV0 (0 operating, 0 closed)
8UBS AG1 (1 operating, 0 closed)
9Intesa Sanpaolo S.p.a.1 (0 operating, 1 closed)
10Credit Suisse AG1 (1 operating, 0 closed)
11HSBC Bank plc2 (0 operating, 2 closed)
12Standard Chartered Bank0 (0 operating, 0 closed)
13Coöperatieve Rabobank U.A.2 (0 operating, 2 closed)
14Nordea Bank Abp1 (0 operating, 1 closed)
15Lloyds Bank Plc0 (0 operating, 0 closed)
16Banque Fédérative du Crédit Mutuel0 (0 operating, 0 closed)
17Commerzbank AG1 (1 operating, 0 closed)
18Banco Santander, S.A.1 (1 operating, 0 closed)
19Unicredit Spa1 (0 operating, 1 closed)
20Banco Bilbao Vizcaya Argentaria, S.A.1 (1 operating, 0 closed)
21CaixaBank, S.A.0 (0 operating, 0 closed)
22ABN AMRO Bank NV0 (0 operating, 0 closed)
23Danske Bank A/S0 (0 operating, 0 closed)
24NATWEST MARKETS PLC0 (0 operating, 0 closed)
25KBC Bank1 (0 operating, 1 closed)
26Landesbank Baden-Württemberg1 (0 operating, 1 closed)
27Erste Group Bank AG1 (0 operating, 1 closed)
28Bayerische Landesbank0 (0 operating, 0 closed)
29DNB BANK ASA1 (1 operating, 0 closed)
30Allied Irish Banks, Plc1 (1 operating, 0 closed)
 

List of Banks Operating in the Cayman Islands

NameBank CategoryCountry of Origin
Alexandria Bancorp Limited Banking & TrustCategory 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) Panama
Australia and New Zealand Banking Group LimitedCategory B (Banking & Trust) 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 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 & Trust) 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 & Trust) Cayman Islands
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 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
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
Haitong Banco de Investimento do Brasil S.A.Category B (Banking) China
Heritage Bank (new)Category B (Banking) Switzerland
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) United States
Itau Bank & Trust Cayman Ltd.Category B (Banking & Trust) Brazil
Itau Bank, Ltd.Category B (Banking) Brazil
Itau Unibanco Holding S.A.Category B (Banking & Trust) 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
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
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
Abbey National Treasury Services plc (closed)Category B (Banking) Spain
Amegy Bank National Association (closed)Category B (Banking) United States
Banco Colpatria Cayman Inc. (closed)Category B (Banking) Colombia
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
Caixa Geral de Depositos, S.A. (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
Credit Agricole Corporate and Investment Bank (closed)Category B (Banking) France
DZ Bank AG Deutsche Zentral Genossenschaftsbank, Frankfurt am Main (closed)Category B (Banking) Germany
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
Gulf International Bank B.S.C. (closed)Category B (Banking) Bahrain
Helm Bank Cayman (closed)Category B (Banking & Trust) Panama
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
Intesa Sanpaolo S.p.A. (closed)Category B (Banking) Italy
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
MUFG Union Bank, National Association (closed)Category B (Banking & Trust) United States
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) Finland
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
Scotiabank Inverlat S.A. (closed)Category B (Banking) Canada
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

External Links

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