The Cayman Islands Monetary Authority (CIMA) is taking action after the U.S. Federal Deposit Insurance Corporation (FDIC) seized deposits held at Silicon Valley Bank’s (SVB) branch in the territory. According to a government official, CIMA is exploring legal options to address the situation.
The FDIC seized the deposits after SVB failed to comply with the agency’s requirements for foreign branches. The FDIC has been working with SVB to resolve the issue, but the bank has yet to meet the agency’s standards.
The seizure of deposits has caused concern among the Cayman Islands’ financial institutions, as it could have a negative impact on the territory’s reputation as a financial hub. CIMA is working to ensure that the situation is resolved quickly and that the Cayman Islands’ financial sector remains stable.
The FDIC and SVB have yet to comment on the situation. It remains to be seen how the situation will be resolved and what impact it will have on the Cayman Islands’ financial sector.