This paper discusses findings of the assessment of Financial Sector Supervision and Regulation on the Cayman Islands. The assessment reveals that substantial progress has been made in the implementation of the 2003 Offshore Financial Center assessment recommendations, including, importantly, regarding Cayman Islands Monetary Authority’s independence and resources. There is scope for enhancing regulatory reporting and disclosure requirements by financial entities, such as shortening the period for filing required documents and requiring all insurers to disclose their use of derivatives and similar commitments regularly.
of international reserves, supported by appropriately tailored access criteria.
There is no deposit insurance fund. Given the magnitude of the bank deposit liability relative to the CaymanIslandsGDP and the nature of most of those liabilities, there is no compelling argument to establish one with universal participation. In the future, the authorities could explore options to establish one with participation limited in principle to local banks.
Resolution tools include the powers to appoint a comptroller and ultimately a liquidator. Although supervisory