Banks in USVI are Safe, Lt. Governor Says Following Collapse of SVB - the 16th Largest Bank in U.S.

The dramatic and swift collapse of the Silicon Valley Bank (SVB) in California on March 10 has led the lieutenant governor of the Virgin Islands, who also holds the role of chairman of the Division of Banking, Insurance and Financial Regulation, to issue a statement reassuring residents that banks doing business in the USVI are safe.

Large banks operating in the U.S. Virgin Islands include Oriental Bank, Firstbank, Popular — the three largest, all of which are headquartered in Puerto Rico – followed by Bank of St. Croix and Merchant's Commercial Bank.

“There is no concern that we are faced with or expect regarding the Silicon Valley Bank being closed and any trickle-down effect. The Territory’s banks are stable," Lt. Governor Tregenza Roach said Tuesday morning. "In April of last year, senior representatives of each bank met with the VI Banking Board and provided comprehensive reports on the state of each banks’ finances. Since then, we have received updates and additional reports that provide a strong financial outlook."

SVB, which was the 16th largest bank in all of the U.S. once boasting assets of $209 billion, and the second-largest bank failure in U.S. history, on Sunday saw U.S. regulators take control of the failed institution while announcing emergency measures aimed at stemming losses and calming fears so that depositors don't pull their money from smaller lenders en masse.