The FIC is aware that there may be concerns regarding large movement of deposits from Bank of Guam, Koror Branch. Therefore, the FIC wishes to notify and reassure the public regarding the financial condition of all banks licensed to conduct business in the Republic of Palau.
All banks operating in Palau have been and continue to be solvent (having sufficient or more than adequate capital), and they remain highly liquid (able to meet depositor withdrawals on their accounts). The FIC has no concerns about the stability and viability of the banking sector.
Due to the COVID-19 Pandemic that has resulted in no tourism activity and the lack of regularly scheduled inbound flights from Guam that transport US currency, there are instances that bank customers may encounter some limitations on cash withdrawals. This is to ensure that all depositors can receive cash up to a daily withdrawal amount limit (much like ATM withdrawals). The large WIOA direct payment assistance as well as other Government economic assistance payments and customers hoarding or holding cash have also contributed to higher-than-normal demand for cash. All other transactions not involving cash are being processed as usual.
The FIC has maintained an increased level of regular communications with banks locally and with the Headquarters of foreign bank branches since the beginning of the Pandemic. Any matters that have needed attention or issues that require the FIC to address have been dealt with accordingly.
As of this time, the FIC wishes to reassure the public that there is no bank operating in Palau that is at risk of losing their depositors’ money. The local banks are safe, secure and continue to operate in a sound manner. US Branch banks remain in good condition, have adequate liquidity and solvency, and are in good standing with the Palau FIC and the US FDIC, and their other US regulators. Customers at these US bank branches are assured that their deposits remain insured up to the US FDIC insurance limit, and will continue to be insured going forward.
FIC Regulations require all banks publish statements of their financial condition in local newspapers – you may find these in the local newspapers published during the week of February 22~26, 2021. Furthermore, you may find this information posted in the lobby of all licensed banks. You may ask for a copy of these posted information should you require.