4000 - Advisory Opinions
FDIC Insurance For Branches Located in the United States Virgin Islands
November 9, 1989
Roger A. Hood, Assistant General Counsel
I am writing in reply to your letter of October 17, 1989, to our conversation of that same date, and to your conversation with *** of our New York regional office. You posed the question whether a Canadian bank is ineligible to receive FDIC insurance for branches located in the United States Virgin Islands. A Virgin Islands branch of a Canadian chartered bank is not eligible for deposit insurance, as indicated in the enclosed information which was contained in the preamble to the 1979 regulations on the International Banking Act. The discussion of the issue remains valid today. Although a Canadian bank would not be eligible to establish an insured branch in the U.S. Virgin Islands, assuming that it complies with other requirements, including obtaining a state charter, it would be eligible to establish an insured bank there.