Since its official launch in 2024, the Virgin Islands Deposit Insurance Corporation (VIDIC) has quickly become a cornerstone of financial stability in the BVI.

Led by founding CEO Lisa Violet, VIDIC plays a dual role: protecting depositors and supporting the resolution of troubled banks. “Our work is about building trust in the financial system,” notes Violet. “We exist to protect consumers and businesses, ensuring their deposits are safe.”

VIDIC operates under a ‘payout plus resolution authority’ model and insures deposits up to $100,000 for all deposit-taking institutions licensed by the Financial Services Commission (FSC). It became a full member of the International Association of Deposit Insurers (IADI) in March 2025, reflecting global alignment and credibility. “Being part of IADI validates our adherence to international best practices,” Violet adds. “It shows we are serious about doing this right.”

Its vision goes beyond protection, though. “We are focused on public awareness and financial empowerment,” Violet explains. With a six-month outreach campaign spanning digital signage, full page newspaper ads and active social media, VIDIC is ensuring its message reaches every corner of the territory. “We recently installed our VIDIC door decals at all bank branches,” Violet shares. “We are working closely with institutions to ensure their certification and signage are prominently displayed. We want consumers to feel secure when they walk into any bank.” Another recent initiative includes a webinar on correspondent banking — a technical but vital subject in maintaining global financial competitiveness.

Building local capacity remains a key cog. “We have been intentional about the recruitment and professional development of local resources,” Violet says. Via internships and strategic engagements, VIDIC is investing in the territory’s next generation of financial leaders

The BVI’s diverse banking sector — with institutions from the U.S., Canada, Liechtenstein, the Caribbean and a digital-first bank — adds to its unique global appeal. “This adaptability sets us apart.” One of VIDIC’s most encouraging developments has been the changing perception among banks themselves. “While some banks initially saw the insurance premium as a cost, it is now viewed as vital to a strong financial system,” she notes. “Banks have embraced our role in fostering a resilient, best-in-class sector.

A future of public engagement

As VIDIC looks beyond its foundational year, its strategy reflects a blend of international standards and local relevance. Its close collaboration with the FSC continues to evolve, strengthening prudential supervision and supporting the early detection of risk. “The groundwork is in place for continued progress,” says Violet. “I am proud of what we have built and confident in where we are going.” She adds that VIDIC views the FSC as its co-monitor and that work is deeply interconnected. “We are building a system that emphasizes readiness, prevention, and resilience,” she says.

One of the key structural features of VIDIC’s framework is its mandatory coverage model. All licensed deposit-taking institutions in the BVI — currently seven in total — are required to participate in the scheme. These include a mix of local, regional and international banks, which fund the deposit insurance pool through regular contributions. This unified approach ensures a consistent safety net across the financial system, regardless of the institution’s origin or size.

Ultimately, Violet believes VIDIC’s most lasting contribution may be cultural. “Consumers are becoming more aware of deposit protection and the message of financial empowerment,” she reflects. “That is the most rewarding impact. We are not just building a system, we’re building confidence.

Source: Panorama (Distributed with The Miami Herald)