Isle of Man Banking Sector
The Isle of Man has a strong and diverse banking sector that offers a highly developed infrastructure to support individuals and corporations in their global activities. Building on its reputation and expertise, the Island's banking sector offers all the services that private, corporate and institutional clients may need.
The Isle of Man has a reputation as a centre of excellence for expatriate banking and provides a secure location for investments. It is possible to access a complete range of world-class banking services and some of the world's most respected international banks have established a presence.
The Isle of Man has a Depositor's Compensation Scheme (DCS) which may compensate people who hold money with current and deposit accounts in banks and building societies licensed in the Isle of Man if they fail. The maximum compensation is £50,000 calculated per individual (and £20,000 for others) in respect of ALL the accounts held with any deposit taker.
An Alternative Banking Regime
In 2016 the Isle of Man introduced the Alternative Banking Regime (ABR) framework, legislative changes following consultation and industry collaboration, to provide new banking opportunities for businesses on the Isle of Man. The ABR is designed to attract banking operations to the Island, in particular Private Banks, Foreign Bank branches and Representative Offices.
The ABR expands the existing Class 1 (deposit taking) banking licence to include:
- Class 1 (1) – for the typical existing bank and any taking retail deposits.
- Class 1 (2) – for non-retail deposit takers - those that provide services to a very limited class of individuals, and corporates.
- Class 1 (3) – for Representative Offices of Foreign banks, not able to take deposits in the Island.
Click here to download the Alternative Banking Regime factsheet.
*Please note, banks operating under the Class 1(2) and Class 1(3) would not have the protection offered by the DCS in the event of their failure; individuals banking with them are expected to be able to shoulder such losses. Disclosure and transparency rules are included within the full ABR framework. Corporation tax on profits for retail deposit based businesses is set at 10%. All other banking activities are rated at 0%.