The Bermuda Monetary Authority has published a discussion paper on potential banking models for Bermuda as the first step toward updating the island’s banking and deposit-taking framework. The paper seeks stakeholder views on which models could diversify the sector, widen access to services and support innovation, while preserving financial stability and remaining aligned with the latest Basel Committee on Banking Supervision standards and Bermuda’s Proceeds of Crime anti-money laundering and anti-terrorist financing rules. The review is framed around the need to revisit the Banks and Deposit Companies Act 1999, which has not been substantially updated despite changes in technology, customer behaviour and financial products. The paper sets out models the Authority considers potentially relevant for Bermuda, including wholesale depositary and custodian banks, merchant and investment banks, broker and broker-dealers, digital asset banks, agent or representative banks, mortgage corporations, finance companies, and publicly owned savings or development banks. It also questions whether a separate mutual societies licence is needed given the existing credit union framework. Across these options, the Authority highlights issues including demand for new entrants, possible disruption to existing retail banking, prudential treatment of cryptoasset activity, and the case for bringing finance companies under supervisory oversight. The paper notes that Bermuda currently has four operational banks licensed to serve the general public. Comments are invited until 1 August 2026. The Authority plans to use the feedback to prepare a consultation paper with refined proposals for an updated banking and deposit-taking regime, including possible new licence categories for defined banking activities.
Bermuda Monetary Authority2026-06-02
Bermuda Monetary Authority seeks feedback on potential new banking models ahead of banking regime overhaul
The Bermuda Monetary Authority has issued a discussion paper on potential banking models as a first step toward updating the Banks and Deposit Companies Act 1999 and the wider banking framework. It seeks views on wholesale depositary and custodian banks, merchant and investment banks, broker-dealers, digital asset banks, mortgage corporations, finance companies, public savings or development banks, and a possible mutual societies licence. It highlights demand for new entrants, potential disruption to retail banking, prudential treatment of cryptoasset activity and supervisory oversight of finance companies, and will inform a consultation paper on an updated regime and new licence categories.