Bermuda’s banks welcome captives business

The strength and stability of Bermuda’s banking sector provides a strong reason to set up a captive on the island.

That was the message from a panel at the 2023 Bermuda Captive Conference, which discussed what services banks on Bermuda provide to captives.

Louise Twiss West, head of wholesale banking at HSBC Bermuda and Jody Feldman, senior vice president and head of corporate banking at Butterfield, stressed that the banking industry is very strong on the island.

Fielding questions from the audience they both underlined that international business is a part of the bedrock of Bermuda’s economy and that there is a symbiotic relationship between the captive industry and banks on Bermuda.

Both said that bank account can be quickly set up on Bermuda and that the Bermuda Monetary Authority offered strong regulation and is internationally respected.

They also stressed that the banking crisis in the US earlier this year was down to certain specific reasons involving individual banks, such as Silicon Valley Bank.

Both agreed, with some caveats, that US rate rises to deal with inflation could have peaked but they told the audience to keep a close eye out on developments.

Feldman concluded that Bermuda is the risk capital of the world and is at the cutting edge of risk, with an ecosystem of expertise that is well set up to deal with clients who want to set up a captive.