Insurance corporation formed to protect bank deposits
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The office of VIDIC was officially opened on Main Street on Wednesday, December 11, 2024, when its Chairman Ian S. Smith said the mobilisation of the VIDIC Board, executive and administrative framework, and office are key steps toward the enhancement of depositor confidence and financial stability and financial security for depositors in the territory.
Functions of VIDIC
“In seeking to perform its principal functions, the VIDIC must establish and manage systems for insurance of deposits, assess and mitigate against financial risk exposure, and pursue such other objects that will benefit persons who maintain deposits with member institutions.”
According to Mr Smith, provisions have been put in place to protect consumers from not just the impact of bank liquidity issues but also risks that may follow reputational damage.
“Bank financial distress created by crises in the banking system is notorious for manifesting in phenomena like run-on banks – a situation where depositors decide to withdraw their funds immediately, which could ultimately lead to liquidity issues.
“Where a bank shows signs of distress, the VIDIC’s concern is that depositors are protected and, where necessary, the banking institution can be wound up in the most efficient way possible yet in such a way that has the least impact on financial stability; essentially, we are able to evaluate circumstances of potential bank failure and, where relevant, utilise bridge bank and resolution powers as a means of reducing negative impacts to the system.”
‘My little two cents is protected’- Premier Wheatley
Premier and Minister of Finance Dr the Hon Natalio D. Wheatley (R7) was also at the VIDIC office opening.
“Let me also recognise all the financial institutions who have paid their premium without frowning. I think you are to be commended because, based on the information I received, you have been very engaged and very cooperative along the way and I am grateful as someone who is a depositor and today I can say that my little two cents is protected … and I know the people of the Virgin Islands is also grateful to you.”
Meanwhile, the Board of Directors of the Virgin Islands Deposit Insurance Corporation is responsible for the policy and general administration of the Corporation and is governed by a six-member Board of Directors from the private and public sectors who bring expertise, stewardship, and due care to act in the best interests of the VIDIC and its stakeholders in accordance with laws, regulations and industry best practices.
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12 Responses to “Insurance corporation formed to protect bank deposits”
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Strive, to open large accounts-even, if, for a child, to ensure, non- fee guarantees, for deposits.
It's the only way to go!
Giving Nataleo and his unidentified set the OK with an overnight made up to mimic a bona fide established entity is stupidity to the max.
The man is infamous when it comes to our purse. Untrustworthy time and time again.
1. What financial instruments and protected and which ones are not?
2. What is the maximum coverage, ie, $100K, $200K, etc ( the US FDIC only covers $250K)?
3. Is government providing the working capital for the VIDIC?
4. Do banks have to partake in the VIDIC for their customers to be covered?
5. What event will drive an VIDIC payout?
6. Can non-banks partake in the VIDIC?
7. Is the VIDIC an unfunded liability?
8. Was this a well/planned project or a sound good something to do?
9. Why are there few local banks?
10. How is the NBVI relative to other banks? Is the NBVI lacking the skill and ability to create money?