Regulators continue wind down of Bank of Asia
The process to wind down Bank of Asia (BVI) Limited has entered a new stage under court supervision, according to a joint statement issued by the Virgin Islands Deposit Insurance Corporation (VIDIC) and the British Virgin Islands Financial Services Commission (FSC).
The regulators confirmed that Joint Liquidators were appointed on 22 October 2025 and are now authorised to begin disbursing insured deposits to eligible depositors. The disbursement will be conducted in accordance with the Virgin Islands’ Deposit Insurance and Insolvency frameworks.
The update marks what regulators described as “an important milestone in resolving the Bank’s operations” and reaffirms their commitment to protecting depositors and maintaining confidence in the Territory’s financial system.
The Bank of Asia’s wind-down process began earlier this year, following regulatory action in May when authorities announced their intention to close the institution. At that time, the FSC and VIDIC said the decision was based on established legal and regulatory requirements designed to preserve financial stability and safeguard depositors.
Former VIDIC CEO Lisa Violet explained at the time that the corporation’s remit is “to provide protection for depositors against the loss of insured deposits placed within member institutions (banks), and to promote and contribute to the stability of the financial system in the British Virgin Islands.”
FSC Managing Director and CEO Kenneth Baker added that “the banking sector in the BVI remains stable, strong and resilient” and that the action taken “was necessary based on established regulatory requirements.”
The winding-down comes amid ongoing public scrutiny following reports that the government had more than US$5 million deposited with the bank before it was declared insolvent. Earlier this year, Opposition members questioned the government about the safety of these public funds, while regulators confirmed that measures were in place to protect depositors under the existing insurance framework.
Bank of Asia (BVI) Limited was licensed in 2017 as the first fully digital bank in the Virgin Islands, targeting international clients with online banking services. The institution’s closure follows months of financial distress and insolvency findings that led to the court-supervised liquidation now underway.
As of this latest update, the regulators said they remain focused on ensuring the orderly resolution of the Bank’s affairs and the protection of customer deposits throughout the process.
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The Anguillians must be scared dread!
stop insulting Anguillans
I cannot imagine that Bank of Asia had many customers who will qualify to get settlement from VIDIC under that entity’s rules. Most of its clients would have been those attracted by its crypto offering and dubious background, rather than regular BVI residents.
Kenneth Baker is correct in that the BVI banking sector is stable, strong and resilient. Bank of Asia was none of these, so we still need an answer as to why government gave it $5M. No one in their right mind, having done even basic research, would have made such a deposit. We await the Auditor General’s report with great interest.
That poor media house that is trying to make a bigger deal of this and can’t get any movement on it. Let the regulators and professionals do their work.
WE NEED ANSWERS ON OUR 5M THAT WAS PUT INTI A FAILING BANK. LORNA AND NATALIO WE NEED AN ANSWER
MONEY for roads? no
money for infrastructure? no
money for education?
money to improve water and electricity services ? no
money to pay workers at local hospital a decent pay?no
money to dump into a failing bank on its last knees ? ofc!!!
money for parties and flights out the country to bring ntn positive back to implement…ofc!!!!
UK BAD UK DONT WANA SEE US PROGRESS! when we are the ones inflicting self harm and stagnation smh
What will be our next Alice In Wonderland Scheme that will be used to take the Space Cadets of the BVI who haven’t got a clue. First it was BVI Airways now its Bank of Asia be careful I am sure the sharks already smell blood in the water.