Overview
As per Moody’s Investors Service, the rating for the banking system of the Isle of Man has been stable until the mid of 2016. But after that, Moody’s Investors Service has changed their rating from stable to negative.
Here are a few reasons for which they have changed their rating for the banking system of the Isle of Man –
- First of all, there’s a correlation of credit risk between the Isle of Man and the UK. Moody has been able to see the risk in the light of economic, financial, and institutional linkages.
- Secondly, the outlook for growth of the Isle of Man is quite uncertain as of now.
Plus, the UK’s exit from the European Union (EU) is quite a setback for the economy of the Isle of Man.
Structure of Banks in the Isle of Man
There are around 18 banks in Isle of Man as of now. Out of these 18 banks, Conister Bank Limited is the only bank that has the domestic capital. All other banks are either subsidiaries of foreign banks or the branches of the same. And among these foreign branches and subsidiaries, most of them are from the UK.
In the year 2016, the Government of the Isle of Man introduced an “alternative banking regime” to attract and encourage other banks to come to the Isle of Man.
There are three licenses that the Government issued under the “alternative banking regime”.
-
- Class 1(1) license to accept retail deposits.
- Class 1(2) license to accept non-retail deposits.
- Class 1(3) license is for representative offices of foreign banks. These banks cannot accept deposits from the Isle of Man.
List of Top 9 Banks in the Isle of Man
- Conister Bank Limited
- Cayman National Bank & Trust Company (Isle of Man) Limited
- Barclay’s Bank PLC
- Isle of Man Bank Limited
- The Royal Bank of Scotland International Limited
- Lloyd Bank International Limited
- Santander UK PLC
- Standard Bank Isle of Man Limited
- Nedbank Private Wealth Limited
Let’s look at each one of them in detail –
#1. Conister Bank Limited:
This bank is the only bank that has domestic capital. It was established in the year 1935, around 82 years ago. The head-quarter of this bank is located in Douglas. At the end of 2016, the total assets acquired by the bank were the US $152 million. In the same year, the net profit of this bank was the US $1.68 million. It provides services and offers financial products to both corporate and private individuals. It has a depositor scheme that accounts for up to 50,000 British Pounds per depositor.
#2. Cayman National Bank & Trust Company (Isle of Man) Limited:
This bank was established in the year 1985, around 32 years ago. The head-quarter of this bank is located in Douglas. At the end of 2016, the total assets acquired by the bank were the US $1.32 billion. In the same year, the net profit of this bank was the US $10.8 million. The bank has got a license from the Isle of Man Financial Services Authority. It offers a whole gamut of products and services to both corporate clients and private customers.
#3. Barclay’s Bank PLC:
Barclay’s Bank PLC of the Isle of Man is the branch of Barclay’s Bank in the United Kingdom. The head-quarter of this bank is situated in Douglas. At the end of 2016, the total assets acquired by the bank were the US $1566 billion. In the same year, the net profit of this bank was US $5.2 billion. The bank has got a license from the Isle of Man Financial Services Authority. Barclay’s Bank mainly provides wealth management and investment products and services to its clients.
#4. Isle of Man Bank Limited:
It is quite old bank. It was established in the year 1865, around 152 years ago. The head-quarter of this bank is located in Douglas. At the end of 2016, the total assets acquired by the bank were the US $1909 million. In the same year, the net profit of this bank was the US $10 million. The bank offers a whole gamut of services and products like current and savings bank accounts, financial planning, credit cards, online banking, mortgages, online shares dealing services, etc.
#5. The Royal Bank of Scotland International Limited:
This is relatively a new top bank in the Isle of Man. It was established in the year 1996, just 21 years ago. The head-quarter of this bank is situated in Douglas. This bank has employed around 1500 employees to serve its customers. The Royal Bank of Scotland International Limited is the offshore banking branch of the Royal Bank of Scotland group. It also operates as a sister bank of Isle of Bank. The bank has got a license from the Isle of Man Financial Supervision Authority. It offers a whole gamut of corporate banking, investor services, and treasury.
#6. Lloyd Bank International Limited:
Lloyds TSB is comparatively a new bank. It was established in the year 2004, just 13 years ago. As of 2015, it was found that this bank has employed over 1000 people in both the Isle of Man and in the Channel Islands. This bank was first established in Jersey. It has branches in Guernsey and in the Isle of Man. It offers a whole gamut of financial products and services like savings and current bank accounts, mortgage, deposit products, loans, asset management services, etc.
#7. Santander UK PLC:
Santander UK PLC was established in the year 1990, just 27 years ago. The head-quarter of this bank is situated in Douglas. Santander UK PLC is the subsidiary of Santander Group. Santander Group is one of the largest financial service providers in the UK. This bank is also one of the largest bank deposit takers. It offers a lot of financial products and services under the name of Santander International.
#8. Standard Bank Isle of Man Limited:
This is relatively a new bank in the Isle of Man. It was established in the year 1992, just 25 years ago. The head-quarter of this bank is situated in Douglas. Standard Bank of Isle of Man Limited is the subsidiary of Standard Bank Group Limited. Standard Bank Group Limited is based in Johannesburg, South Africa. This bank group has employed around 50,000 employees across the whole world to serve its customers.
#9. Nedbank Private Wealth Limited:
This bank was established in the year 1987, around 30 years ago. When it was established it was named Fairbairn Private Bank Limited. Later, in October 2012, the name of the bank was changed to Nedbank Private Wealth Limited. Nedbank Private Wealth Limited is the subsidiary of Nedbank Group Limited. This bank provides a lot of products and services to high-net-worth individuals. The focus of this bank is on wealth management services.
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