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Economy and Banking Sector of Bermuda

Financial Services

Financial sector of Bermuda is focused on providing the following financial services:

  • offshore banking
  • insurance
  • fund and trust management
  • company administration

Banking Focus

Banks in Bermuda are mainly focused on the following areas:

  • private banking and wealth management
  • universal banking
  • international banking

Banking Supervision

Bermuda Monetary Authority

Banking Sector Structure

Number of Banks
4
Consolidated Assets (2017)
21,800.00 mln USD  (-3.96%)
Recent Changes (2018)
new banks: 0, closed banks: 0

Currently there are 4 credit institutions operating in Bermuda.

In 2017 consolidated banking assets in Bermuda were 21,800.00 mln USD. The consolidated banking assets' evolution is shown at Chart 1 below.

Consolidated banking assets in Bermuda.

Chart 1. Consolidated banking assets in Bermuda.

Recent structural changes (2013 - 2018) of the banking sector of Bermuda are summarised in Table 1.

201320142015201620172018
Number of Opened Banks000000
Number of Closed Banks000000

Table 1. Recent structural changes in the banking sector of Bermuda.

Deposit Guarantee Scheme

Maximum Protected Amount
25,000 USD

Deposit guarantee scheme is a financial stability mechanism implemented in many countries to protect bank depositors against the loss of their deposits in the case when a bank is unable to meet its obligations to depositors by compensating certain deposits held by depositors of the bank. This compensation is paid out from the contributions which banks have made into a deposit guarantee fund.

From a depositor's point of view it is important to know:

  • if the depositor is eligible within the terms of the deposit guarantee scheme;
  • if the depositor's bank is a participant in the deposit guarantee scheme;
  • if the depositor's type of deposit is covered by the deposit guarantee scheme.

All these details about deposit guarantee scheme in Bermuda are summarised in Table 2.

Maximum Protected Amount
25,000 USD
Scheme Participants
all credit institutions operating in Bermuda (including branches of foreign banks)
branches of Bermudian banks abroad
Eligible Depositors
natural persons
small businesses registered in Bermuda
charities
Covered Accounts
current (chequing) accounts
savings accounts
fixed deposit accounts
credit union member’s share accounts
Covered Currencies
BMD (Bermudian dollar)
Paid In Currency
USD

Table 2. Deposit guarantee scheme in Bermuda.

Further Information

Country Ceiling for Deposits

Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.

Local Currency (Bermudian dollar)
Aa3 (high grade)
Foreign Currency
A2 (upper medium grade)

Local currency (Bermudian dollar) deposit ceiling for Bermuda is set to Aa3 (high grade), foreign currency deposit ceiling is A2 (upper medium grade).