BANKING SYSTEM OF BERMUDA

Bermuda is not an offshore international banking center. International banks, which operate in other offshore locations and also in most onshore jurisdictions,  are not allowed to register as banks and may not operate as banks in Bermuda for the general population.
There are now four banks, all local or mostly so with assets that in aggregate exceed US$500 billion. All registered banks in Bermuda must by law be at least 60% beneficially owned by Bermudians. The actual figure was closer to 85% until early in 2004. There is an understanding from the Bermuda Government that their Head Offices will remain in Bermuda, their staff in Bermuda will be majority Bermudian and their mind, management and control will be Bermudian.
These banks not only handle the day-to-day banking needs of the island’s business community but also are active in international corporate operations. Although foreign banks may not operate in Bermuda, exempted companies may deal with any bank in the world in any currency, because no exchange restrictions are imposed on them.
The services that the Bermuda banks offer include investment management, opportunities to invest in Bermuda-based mutual funds, letter of credit facilities, and links with all major financial centers around the world. The banks have achieved the same status as other international banking institutions through their handling of large funds on behalf of the island’s exempted companies. Bermuda’s four banks operate a joint clearing system.
The Bermuda Government benefits substantially from licensing and regulation, via the Bermuda Monetary Authority, of Bermuda's banks. There is no central bank in Bermuda. Instead, the Bermuda Monetary Authority is the regulatory authority and the relevant pieces of legislation are The Banks & Deposit Companies Act 1999 and The Banking Appeal Tribunal Regulations 2001. The Bermuda Monetary Authority is responsible for the licensing and regulation of insurance companies, banks, deposit companies and investment businesses, the issue and redemption of Bermuda notes and coins, supervision of Bermuda’s financial institutions, providing advice to Government on banking and other financial and monetary matters and the vetting of individuals and entities wishing to set up corporate entities in Bermuda.

Financial Institutions Operating:

Bank of Bermuda Limited (HSBC  group)
Bank of N. T. Butterfield & Son Limited
Bermuda Commercial Bank Ltd
Capital G Bank Limited.