A central position in the economy of Bermuda is given to the financial services sector. International businesses consider the island as a friendly and favorable hub to grow, protect and maintain their activities and resources. Financial holdings by foreign individuals, exempted companies and International Business Corporations exceed local assets while domestic loan portfolios hold a challenging exposure to default risk. While Basel III is adopted in 2015, the Bermuda Monetary Authority require deposit taking credit institutions to maintain higher levels of regulatory capital. This requirement is furthered by the absence of a central bank able to act as a lender of last resort in times of crisis. Deposit insurance is therefore an important tool to maintain confidence in the local financial system by protecting the account balances of local creditors.
Deposit Guarantee Scheme (Bermuda): The Bermuda Deposit Insurance Corporation (BDIC) secures account balances held in Bermuda Dollar with member institutions to protect the stability of the financial system.
Secured Deposit Limit: $ 25.000 per insured account holder and scheme member.
Insured Depositor: Deposit insurance in Bermuda is limited to accounts held in local currency and exclusively applies to predefined creditors. These include individuals, sole proprietorships, partnerships, unincorporated associations, charities and local small businesses registered with and maintained by the BEDC.
Covered Events: Payment of compensation of insured deposits to insured depositors via the Bermuda Deposit Insurance Fund takes place when an order is made by a court to wind up the scheme member, or when the BDIC and the BMA jointly determine that the scheme member is insolvent or unable to repay deposits when they are due.
Claim Filing Procedures: When a scheme member is being wound up or has become insolvent and the BDIC has determined that compensation is to be paid to insured depositors out of the fund, the BDIC shall as soon as practicable give notice that such compensation shall be paid out of the Fund to the insured depositors of the failed scheme member. The failed member provides standardized data to the BDIC to verify the claim eligibility.
Repayment Conditions: The BDIC shall publish in the national gazette a notice of payment of compensation. This notification includes the terms and timeframe of the claim filing procedures.
Scheme Membership: Every bank and credit institution operating in Bermuda and its local currency shall be a member of the scheme. Member institutions make premium contributions to the fund to ensure adequate coverage in the event of failure of one of the members.
Need Help To Submit Your DGS Claim or to Substantiate a Rejected DGS Claim? Contact us Today…
- Visit: www.depositguaranteeclaim.com/free-case-evaluation
- Call: 00357 25 057 544 or 001 646 513 2855
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