Protecting your
deposits in Bermuda

The BDIC provides deposit insurance protection and support for Bermuda Dollar depositors, contributing to the stability of the financial sector in Bermuda, while minimising risk to the depositor

Public Access to Information (PATI)


PATI Information Statement

The BDIC, as a statutory corporation, is required under the Public Access to Information Act 2010 to publish an Information Statement, which is intended to help the public access information and records that we hold.

The PATI Act creates a new and welcomed culture of openness for public authorities within our country. It introduces the idea that records held by public authorities are a national resource for all of us and the Bermuda Deposit Insurance Corporation (BDIC) wholeheartedly endorses this shift and we are committed to openness, good governance and transparency.

Some information will be routinely available to you without your having to use a request for information or records under the PATI Act. Other information may have confidential security classifications or we may not be able to share some information with you because it would be likely to cause harm to one of the interests protected under the PATI Act. We will endeavor to apply the exemptions reasonably and when required, we will carefully consider the “public interest test” to determine if the exemption applies by balancing the benefit to the public’s interest from disclosure against the harm that would be caused. Our overarching obligation and commitment will be to facilitate the public’s access to information and our records fairly, efficiently and accurately.

Section A: Structure, Organisation and Legislation
The incidence of significant financial losses on the part of financial institutions globally has led to heightened interest on the part of the general public, policy makers and regulators in the key aspects of a country’s financial safety net. The financial safety net typically consists of three elements: prudential regulation and supervision, a lender of last resort and deposit insurance. In Bermuda, which has no central bank or lender of last resort, the safety net has relied heavily on prudential regulation and supervision, which has been carried out by the Bermuda Monetary Authority (BMA). The setting and monitoring of requirements for capital adequacy and the assessment of risk within institutions represent key elements within the framework of prudential oversight and control provided by the BMA to help protect the interests of depositors. The approach developed and applied by the BMA in this regard has reflected the regulatory standards designed and promulgated by the Basel Committee on Banking Supervision and other international standard setting bodies.

While this approach has served Bermuda well in the past, the unprecedented developments affecting banks and financial institutions in the major developed economies suggested that the establishment of a Deposit Insurance Scheme (DIS) in Bermuda to complement the role of the BMA and to provide a further layer of protection to depositors was deemed necessary and timely.

Deposit insurance is a guarantee to depositors in a deposit-taking institution that they will be compensated up to a maximum specified amount of their deposits upon failure of that deposit-taking institution. The primary function of a DIS therefore is to provide enhanced protection for depositors in the event that an individual deposit-taking institution has solvency or other problems that threaten its survival. A well-structured DIS can also help to bolster public confidence and thereby help to reduce the risk of problems in one financial institution escalating into a crisis or spreading to other financial institutions.

The framework for the DIS in Bermuda was established by the creation of the Deposit Insurance Act 2011 (the Act) and its underlying Deposit Insurance Rules 2016. The Act defines the establishment, functions and basic operations of the Deposit Insurance Scheme and provides that the DIS be administered by a body called the Bermuda Deposit Insurance Corporation (BDIC). The BDIC is an independent statutory institution headed by a Board of Directors, which consists of the following members:
The Chief Executive Officer of the BDIC
The Chief Executive Officer of the BMA
The officer of the BMA responsible for the supervision of banks
The Financial Secretary
Not less than two and not more than four other directors

The Minister of Finance after consultation with the BMA appoints the Chairman and other directors of the BDIC from amongst persons with proven experience in banking or financial services.

Section B:

1) Functions, Powers and Duties
In the management of the DIS, the BDIC shall carry out the following principal functions:
(a) Collect premiums from participating financial institutions
(b) Assess claims made against the DIS fund and determine the eligibility and entitlement of claimants
(c) Make compensation payments to eligible depositors as determined
(d) Recover any amount paid out to a failed scheme member’s depositors from the assets of the failed member
(e) Educate the public on matters related to deposit insurance arrangements in Bermuda
In order for the BDIC to discharge its functions effectively, the Board of Directors shall have the necessary powers to finance compensation payments, borrow where necessary to ensure prompt reimbursement to depositors, enter into contracts, invest the DIS fund in the manner specified in the Act, set internal operating budgets and procedures, obtain information from participating banks and appoint agents or authorise third parties to perform any of the functions of the Board under the Act. The BDIC, in exercising the power conferred under Section 9 of the Act, established the Deposit Insurance Rules 2016 (the Rules) which further assist with the operation and administration of the DIS.
To further provide for the efficient and effective discharge of its responsibilities, the Board has established a Premiums and Claims Committee, an Investment Committee and an Audit, Risk and Remuneration Committee. The day-to-day operations of the BDIC are managed by the CEO and a part-time administrator.
2) Obligations Under the PATI Act
To provide an information statement for the public and promulgate it [s5], • To provide other information to the public so that the public needs only to have minimum resort to the use of the Act to obtain information [s6]. This includes: General information, e.g. activities of the Authority • Log of all information requests and their outcome • Quarterly expenditure (upon request) [s6(5)] • Contracts valued at $50,000 or more • To respond to information requests in a timely manner [s12-16] • To track information requests, and provide this data to the Information Commissioner • To respond to requests from the Information Commissioner [s9] • To amend personal information held by the Authority that it is wrong or misleading following a written request by the person to whom the information relates [s19] • To conduct an internal review if formally requested [part 5] • To give evidence for review by the Information Commissioner [part 6, 47(4)], or for judicial review [s49], if required • To provide an annual written report to the Information Commissioner of the status of information requests [s58 (3)] • To do anything else as required under the PATI Act and subsequent Regulations [s59, 60], including: Fees for Requests for information • Management and maintenance of records • Procedures for administering the Act • To train staff and make arrangements so as to facilitate compliance with the Act [s61] • To designate one of its officers to be the person to whom requests are directed [s62]

Section C: Services and Programmes
The principal service that the BDIC carries out presently is to educate the public on matters related to deposit insurance in Bermuda. It does this through the timely provision of answers to questions from the general public on the DIS and through its FAQ’s page on its website.

The BDIC does not currently provide any additional programmes of note.

Section D: Records and Documents Held
The BDIC holds a variety of internal records with a number of these records and documents having confidential security classifications. An example would be the filings from the participating deposit-taking institutions in connection with a claim, together with their quarterly disclosures to the BDIC to support their premium computations.

Other records and documents comprise governance files, administration files, HR/personnel files and invoices from suppliers and contractors to support the payments for goods and services. Such documents may also have restricted security classifications depending on the nature of the record as appropriate.

Section E: Administrative and Operational Manuals
Administrative and operational manuals currently comprise the BDIC employee handbook and the protocol for administering PATI requests.

Section F: Decision Making Policies, Rules and Guidelines
The BDIC currently has policies and procedures in place to assist with financial reporting, investment of the DIS fund, corporate governance and external communications.

Section G: The Information Officer
The designated Information Officer of the BDIC is its Chief Executive Officer.

Section H: Any Other Information
Copies of the BDIC Financials and its Annual Report can be obtained here.

Section J: Information Statement – Copies and Updates
Every public authority shall update its information statement at least once a year and make it available for inspection by the public at reasonable times.

Date Information Statement was updated: May 2019

Locations of Information Statement:
~ The BDIC office
~ The office of the Information Commissioner

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