Overview of Banks in the British Virgin Islands
Even if the British Virgin Islands is a dependent territory of the United Kingdom, still, it is one of the most stable regions in the Caribbean. If we compare the per capita GDP of this island, we would see that this has the highest per capita GDP in the entire region.
Since setting up banks in the offshore territory is very complex, there are only a few banks that could build their presence in the British Virgin Islands. One needs to handle these things sagaciously e.g. bilateral lending, structured finance, acquisition & property finance, debt restructuring, etc.
Plus, there are no ratings of the banks situated in the British Virgin Islands since it is a dependent territory. But the banks are well-capitalized and they have sufficient liquidity to serve the local customers.
Structure of Banks in the British Virgin Islands
As mentioned before, it’s very complex and difficult to form a financial institution. That’s why the number of banks and financial institutions is fewer.
There are only six commercial banks that operate in the British Virgin Islands. There is another bank that exists in the islands, but it was declared restricted as of 2012.
Since 1980, offshore banking came to the British Virgin Islands. The BVI Banking and Fiduciary Services Division controls and regulates the banks here and ensures that the banks adhere to the domestic laws and regulatory standards.
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Top Bank in the British Virgin Islands
Let’s discuss the top banks in the British Virgin Islands in detail –
#1. National Bank of Virgin Islands:
This is one of the most significant commercial top banks in the British Virgin Islands. This bank was established in the year 1974, around 43 years ago. Earlier, it was known as the Development Bank of the Virgin Islands Limited. It was incorporated in the British Virgin Islands as per the Companies Act, Cap. 285. On 28th February 2007, the banks changed its name from the Development Bank of the Virgin Islands to National Bank of Virgin Islands. As the bank has changed its focus from being a development bank to a commercial bank, the approach of the bank also changed after the year 2007. This bank is fully owned by the Government of the British Virgin Islands (3). It provides loans to fishermen and local farmers. It is a full-service commercial bank offering business banking and retail banking products and services to the local customers.
#2. FirstCaribbean International Bank (Cayman) Ltd.:
This is another major commercial top bank in the British Virgin Islands. This bank is the subsidiary of First Caribbean International Bank Limited. This was established in the year 2001, just 16 years ago. The head-quarter of this bank is based in Georgetown. The bank has employed around 2700 people which are quite huge compared to other banks in the British Virgin Islands. At the end of the year 2016, the total assets acquired by this bank were US $11 billion. In the same year, the net profit of this bank was around US $143 million. It has a huge presence in the territory. It operates through 7 offices, 22 banking centers, and 59 branches in 17 regional markets. Since it is a commercial bank, it provides a whole gamut of financial products and services in retail banking, wealth management, investment banking, treasury, corporate banking, and sales & trading.
#3. VP Bank (the British Virgin Islands) Ltd.:
This is also another prominent commercial top bank in the British Virgin Islands. Comparatively, this bank is a bit old; it was established in the year 1956, around 61 years ago. The head-quarter of this bank is situated in Tortola. It has employed around 800 employees to serve local customers. At the end of the year 2016, the total assets acquired by this bank were US $12 billion. In the same year, the net profit of this bank was around US $61 million. VP Bank (the British Virgin Islands) Ltd. is a subsidiary of VP Bank Group. VP Bank Group is one of the largest banks in Liechtenstein. This group has a huge presence in six other locations as well around the world – in Switzerland, Singapore, Luxembourg, Russia, the British Virgin Islands, and Hong Kong. The focus of this bank is on asset management and private banking.
#4. Banco Popular de Puerto Rico:
This is one of the oldest banks among all. This top bank in the British Virgin Islands was established around 100 years ago. The head-quarter of this bank is located in Tortola. This bank has been providing services to the local customers of the British Virgin Islands as well as to the customers of Puerto Rico and the United States. The type of customers they serve is financial institutions, legal entities, and private individuals. It provides services like business banking, retail banking, and fiduciary services to local and foreign customers. At the end of the year 2016, the total assets acquired by this bank were US $39 billion. In the same year, the net profit of this bank was around US $212 million.
#5. Scotiabank (the British Virgin Islands) Ltd.:
This bank is another mentionable name among all banks in the British Virgin Islands. Scotiabank is the subsidiary of Canada’s Bank of Nova Scotia. The Bank of Nova Scotia is one of the leading banks serving customers in Latin America, Central America, the Caribbean, and North America. The head-quarter of Scotiabank (the British Virgin Islands) Ltd. is located in Tortola. This subsidiary bank provides a whole gamut of financial products and services like corporate banking, retail banking, private banking, and wealth management services (5). At the end of the year 2016, the total assets acquired by this bank were US $914 billion. In the same year, the net profit of this bank was around US $7213 million.
#6. First Bank VI:
This bank in the British Virgin Islands was founded in the year 1984, around 33 years ago. The head-quarter of First Bank VI is located in Tortola. Other than serving the local customers of the British Virgin Islands, First Bank VI also serves the customers of Puerto Rico and the United States. It offers a whole gamut of products and services like business banking, retail banking, and insurance products and services. At the end of the year 2016, the total assets acquired by this bank were US $12 billion. In the same year, the net profit of this bank was around US $93 million.
#7. East Asia Financial Holding (BVI) Ltd.:
East Asia Financial Holding (BVI) Ltd. acts as the subsidiary of the Bank of East Asia Ltd. It was established in the year 2008, around 9 years ago. The existence of East Asia Financial Holding (BVI) is the result of acquiring ATC Trustees Limited and Caribbean Corporate Services Limited in the year 2009.
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