Bermuda’s standing as an international financial centre has helped offset any damage to its economy from the fall in tourism because of the pandemic. Many multinational insurance and reinsurance companies are based in the British overseas territory.
The Bermudan banking sector’s average loan-to-deposit ratio of 38% is evidence of “ample liquidity”, according to S&P Global. The territory’s largest lender by assets, Butterfield Bank, posted a loan-to-deposit ratio of 39% in 2020 — down slightly from 42% in 2019 — in 2019, while the second largest bank, HSBC Bank Bermuda saw its loan-to-deposit ratio rise to 62% last year from 59% in 2019, according to The Banker Database.
