BVI deposit insurance scheme CEO appointed
On 1 August 2024, the BVI Financial Services Commission (FSC) announced the recent appointment of Ms Lisa Ann Violet as the first Chief Executive Officer of the Virgin Islands Deposit Insurance Corporation (VIDIC). VIDIC, together with the FSC, maintains a co-monitoring partnership in order to safeguard the financial stability of the Territory.
Background on VIDIC
Established under the Virgin Islands Deposit Insurance Act, 2016, VIDIC was formally launched in January 2024 as a crucial step towards enhancing financial security in the Territory. With its full board now in place, VIDIC is responsible for insuring deposits, assessing financial risks, and contributing to the overall stability of the financial system.
Co-monitoring role with FSC
VIDIC and the FSC share a dual co-monitoring role under their respective legislative frameworks. Their collaboration includes joint oversight of member institutions, shared reporting, and coordinated actions to mitigate financial distress within the banking system. This partnership is designed to ensure that the banking sector remains resilient, with measures in place to address potential bank failures while minimising the impact on the financial system.
Importance of deposit insurance
The establishment of the Deposit Insurance Fund, funded by premiums from local banks, marks a significant milestone. According to VIDIC Chairman Ian Smith, the fund protects consumers from the risks associated with bank liquidity issues and potential crises. The VIDIC’s role includes safeguarding depositors and facilitating the orderly resolution of distressed banks to maintain financial stability.
The press release can be found here.
