Regulatory Alerts2016-05-23
Virgin Islands Deposit Insurance Act, 2016
Enacted by the Legislature of the Virgin Islands, this Act establishes the Virgin Islands Deposit Insurance Corporation and its associated Deposit Insurance Fund to provide limited compensation to insured depositors and promote financial system stability. The legislation mandates the Corporation to levy annual premiums and special contributions from member financial institutions, authorizes it to provide financial assistance and act as receiver or liquidator for failing institutions, and sets borrowing limits tied to insured deposit volumes. It further defines insurable deposit criteria, outlines resolution and bridge bank mechanisms for distressed banks, creates a Deposit Insurance Appeal Board, and imposes compliance, reporting, and penalty obligations on member institutions and their officers.