Bermuda—cross border banking and finance guide
Produced in partnership with Graham Collis
Bermuda—cross border banking and finance guide

The following Banking & Finance practice note produced in partnership with Graham Collis provides comprehensive and up to date legal information covering:

  • Bermuda—cross border banking and finance guide
  • Loan market and developments
  • Please provide a brief overview of the current state of the loan markets in your jurisdiction and any significant recent market developments.
  • Please provide a brief overview of forthcoming changes to the law or other matters that may affect the loan markets or the responses to the questions below.
  • Lending
  • Is it necessary to obtain any consents or licenses in order to lend in your jurisdiction or enforce rights under a loan agreement and if so what is the process for obtaining the consent or license? Are there any other restrictions on lending that foreign lenders should be aware of?
  • Are there any taxes, duties or other charges associated with making loans to entities that are incorporated in your jurisdiction?
  • Are there any restrictions, controls, fees, taxes or charges on foreign exchange in your jurisdiction?
  • How is debt normally transferred in your jurisdiction?
  • Security and guarantees
  • More...

Loan market and developments

Please provide a brief overview of the current state of the loan markets in your jurisdiction and any significant recent market developments.

As at 30 June 2017, Moody’s outlook report on Bermuda’s banking sector was ‘stable’. Moody’s reported that improving asset quality, stronger capital buffers and sound liquidity were contributing factors in their overall assessment of the sector.

Bermuda’s financial services regulator, the Bermuda Monetary Authority, has reported that, as at June 2019, the capital adequacy levels at Bermuda’s banks were well above the minimum regulatory requirements under Basel III, with the sector’s risk asset ratio at 24.3%, the common equity tier 1 capital ratio at 22.9% and the leverage ratio at 8.7%.

Please provide a brief overview of forthcoming changes to the law or other matters that may affect the loan markets or the responses to the questions below.

There are no anticipated significant changes to Bermuda’s banking or contract laws. Basel III regulatory standards have now been phased-in, including the Liquidity Coverage Ratio, Capital Conservation Buffer and Net-Stable Funding Ratio requirements.

Lending

Is it necessary to obtain any consents or licenses in order to lend in your jurisdiction or enforce rights under a loan agreement and if so what is the process for obtaining the consent or license? Are there any other restrictions on lending that foreign lenders should be aware of?

There are no

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