BVI Regulator Says Banking Sector Healthy
by Mike Godfrey, Lowtax.net, Washington
01 November, 2016
The British Virgin Islands Financial Services Commission, which regulates the territory's financial services industry, recently expressed confidence in the banks under its supervision.
The Commission's statement appears to have been prompted by concern it expressed earlier in the year over the health of the state-owned National Bank. which has recently come to light. The Government, in a widely reported statement, in response to local media reports, said: "It is indeed fact that the Financial Services Commission did have some concerns in respect to the size of the Non-performing Loan Portfolio of the bank... these concerns were addressed immediately by the Bank in consultation with Central Government and the [Commission] itself."
The Commission said that while it was unable to comment on the financial condition of any individual financial institution operating in the British Virgin Islands, banks licensed in the territory are "well capitalized and operate with adequate levels of liquidity, which are good indicators of their strength," adding that it does "not foresee any failure in the British Virgin Islands banking sector."
The Commission said it is committed to the effective supervision of all British Virgin Islands licensed financial institutions and confident in its regulatory procedures and processes. When matters of concern are identified, it routinely engages the financial institution to satisfactorily resolve them, it said.
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