July 4, 2017
Central Bank of the Bahamas.
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Financial services shed nearly 160 jobs in 2020
The Bahamian financial services industry shed almost 160 jobs in 2020, a Central Bank report has revealed, with the banking sector suffering multi-billion dollar declines in “balance sheet” and “fiduciary” assets.
100% debt ratio will ‘only partially subside’
The Central Bank is warning that The Bahamas’ near-100 percent debt-to-GDP ratio will “only partially subside” as the economy begins its recovery from COVID-19’s devastation.
Union of Central Bankers members walk off the job
MEMBERS of the Union of Central Bankers walked off the job yesterday citing unresolved grievances with management.
‘Major improvements’ needed on bank fees
Almost two-thirds of Bahamian businesses say the fees charged by commercial banks need “major improvements”, according to the findings of a Central Bank survey.
Internet banking users jump 31%
The number of Bahamian internet banking users increased by almost 31 percent to breach the 100,000 mark in 2020 as COVID-19 increasingly drove persons to digital transactions.
Loan approvals hit six-year low
Bank loan approvals fell to their lowest level for six years in the 2020 second half, it was revealed yesterday, with just two-thirds of applicants approved compared to 80 percent in the prior year.
Deferred bank loans decrease by $1.6bn
“Deferred” commercial banks loans have decreased by more than $1.6bn since COVID-19’s peak, a senior Central Bank official has revealed, while denying that the sector is “over-regulated”.
Banks suffer 37% profitability decline
Bahamian commercial banks saw total private sector loan arrears increase by $76m during the 2020 fourth quarter as the sector’s collective profitability shrunk by 37 percent year-over-year.
Nassau’s tourist arrivals just 2.7% of 2019’s 1m
Total tourist arrivals to New Providence during the 2020 fourth quarter amounted to just 2.7 percent of the prior year’s 1m visitors to further expose COVID-19’s drastic impact on the sector.
National debt near $10bn at 2020 end
The Bahamas’ national debt was just shy of $10bn at year-end 2020, the Central Bank revealed yesterday, having increased by $1.4bn during the previous 12 months.
‘True extent’ of loan delinquency soon revealed
The Central Bank’s governor yesterday warned that the “true extent” of COVID-19 loan delinquencies will soon reveal itself as the final 8.5 percent of credit balances in deferral exit these arrangements.
‘No delusions’ on foreign reserves
The Central Bank has “no delusions” over an external reserves mix that will likely fall below pre-pandemic levels of $1.5bn prior to COVID-19 recovery starting, its governor said yesterday.
Credit bureau to hit 30% of borrowers
Up to 30 percent of Bahamian borrowers will struggle to obtain loans due to the imminent arrival of the nation's first-ever credit bureau, a top banker is warning.
'Stability' concern on NIB's $100m COVID drawdown
The Central Bank has voiced confidence that COVID-19 will not produce a 'bad loan' blow-out to match the $1.2bn credit arrears peak caused by the 2008-2009 global recession.
Loan delinquencies up $92m as tourism arrivals totally dry-up
Mortgage and consumer loan delinquencies soared by $91.8m in two months as tourist arrivals to The Bahamas dropped 98.4 percent year-over-year for October, the Central Bank has revealed.
Nassau's tourism arrivals see 99% September drop
Tourism arrivals almost totally dried up in September 2020 due to COVID-19 lockdowns and border restrictions, falling by 98.6 percent against a prior year comparative that contained Hurricane Dorian.
‘True fall-out’: Household loan defaults grow $58m
MORTGAGE and consumer loan delinquencies increased by $58m during October 2020 with a senior banker warning it may take five to seven years to recover from COVID-19’s “true fall-out”.
Industry urges Central Bank: Stay in your lane
Commercial bankers are urging the Central Bank to effectively stay in its lane and "not intervene in financial reporting matters" after the regulator's recent COVID-19 guidance release.
Central Bank 'stretch' on borrower leniency
The Central Bank was yesterday said to have given commercial banks "a stretch" by urging them to be lenient with borrowers who show signs they may be able to resume repayments in 2021.
Bank of The Bahamas hit by Central Bank’s 3-year bar
Bank of The Bahamas’ top executive admitted its risk management had been poor as he revealed the Central Bank has blocked it from taking on new business borrowers for three-plus years.
Gov't 'front loading' aid for reserves
The Central Bank yesterday said the Government's "front loaded" foreign currency borrowing meant the expected decline in The Bahamas' external reserves will be "delayed" until 2021.
End-October targeted for digital B$ national roll-out
Bahamians are seeking greater security assurances around online transactions, the Central Bank has revealed, as it readies for the digital currency's national roll-out beginning on October 20.
COVID lockdown's $1bn tourism blow
The Bahamas lost around $1bn in tourism earnings at the COVID-19 lockdown's peak as this nation became a "net payer" for travel-related services for likely the first time in its history.
Foreign reserves take $45m hit, the Central Bank reports
The Central Bank says foreign reserves contracted in the month of July by $45m and will continue to fall on the back of weak tourism demand as they also forecast the economy will continue on this path for the reminder of the year.
Banks told: Don't take benefits to repay loans
The Central Bank yesterday said it has ordered commercial banks and credit unions not to use clients' COVID-19 unemployment benefits to repay loan facilities.
Offshore banks: 65% report no COVID impact
Some 65 percent of Bahamas-based international banks have suffered “little or no financial impact” from COVID-19, the Central Bank revealed yesterday, marking the sector as one of the few to emerge relatively unscathed to-date.
Central Bank rethinks overseas data storage
The Central Bank has conceded that Hurricane Dorian’s devastation has prompted a rethink on permitting its financial institution licensees to store confidential client data overseas. The monetary regulator, in its analysis of the “lessons” learned f
Central Bank in 100% GDP wipe-out warning
The Central Bank yesterday warned the Bahamian economy would suffer a near-100 percent wipe-out if a Dorian-strength storm scores a direct hit on both New Providence and Grand Bahama.The regulator, unveiling its full report on the category five storm
Businesses facing 'cripplingly expensive' cash flow insurance
“Cripplingly expensive” business interruption cover, and “local” bank managers allowing borrowers to only protect their loan rather than property value, were key weaknesses exposed by Hurricane Dorian. The Central Bank, in its review of the “lessons
‘Don’t panic’ on $2bn COVID loan deferrals
A Bahamian banker yesterday warned against premature panic after it emerged that borrowers sought repayment waivers for almost $2bn worth of loans at the COVID-19 lockdown's peak.
Central Bank reassures on $2bn reserves
The Bahamas’ key foreign currency reserves were maintained at around $2bn through the peak of the COVID-19 lockdown amid predictions yesterday that they will remain “more than adequate” to sustain the US dollar peg. The Central Bank, unveiling its m
Financial sector faces 'heightened challenge'
The Central Bank is warning that the Bahamian financial services industry faces “heightened challenges” with sector employment levels falling for the fifth consecutive year in 2019. Unveiling its latest annual survey of the industry’s economic contr
Central Bank chokes off $50m investment currency outflows
The Central Bank’s restrictions on outflows through the Investment Currency Market (ICM) will likely save The Bahamas around $50m in foreign reserves, data released yesterday revealed.The monetary authority’s 2019 annual report revealed that Bahamian
Central Bank halts Canadian bank dividends
The Central Bank of The Bahamas has suspended the granting of all exchange control approvals for the payment of dividends by the Canadian-owned commercial banks to their foreign parent.The move, which took “immediate effect” from March, will impact R
Nassau/PI hotels enjoy 18% room revenues growth
Major Nassau/Paradise Island resorts shrugged off a modest one percent room revenue fall-off in December to post an 18 percent gain for the 2019 full year, it was revealed yesterday.
Central Bank's 'game changer' over settlement
Payment services providers yesterday hailed the move allowing them to establish settlement accounts with the Central Bank as “a game changer” for the sector and the digital Bahamian dollar roll-out. Harvey Morris, Omni Financial Services’ chief exec
National debt strikes $8.3bn
The Bahamas’ national debt hit $8.313bn at end-September 2019 with the full fiscal impact of Hurricane Dorian yet to be felt, the Central Bank’s 2019 third quarterly review has revealed. Unveiled yesterday, the report indicates that with some $508m
Nassau/PI hotel room nights off 10% post-Dorian
Large Nassau/Paradise Island hotels endured a “tepid” October in the wake of Hurricane Dorian with revenues falling on the back of a ten percent decline in room nights sold. The Central Bank, unveiling its October monthly economic report, revealed t
Digital payment sector differs on new licence bar
Digital payments solutions providers yesterday gave a mixed reaction to the Central Bank placing a year-long hold on issuing new licences to prevent the market becoming “over-saturated”.Harvey Morris, Omni Financial Services’ chief executive, praised
Nassau/PI hotels enjoying a 25% revenue boost
Large Nassau/Paradise Island hotels enjoyed a 25 percent “revenue boost” for the first nine months of 2019 as Hurricane Dorian only had minimal impact on its September performance. The Central Bank of The Bahamas, unveiling its report on economic de
Central Bank: Dorian inflicts a $2.5bn blow
The Central Bank's governor yesterday forecast that total Hurricane Dorian losses could exceed $2.5bn at the "low end" - a sum equivalent to 20 percent of The Bahamas' total economic output.
6,000 restructure debt during 2019 first half
More than 6,000 Bahamian borrowers applied for debt consolidation loans during the 2019 first half, making it the most sought-after form of consumer credit by some distance. The Central Bank’s latest Lending Conditions Survey, released yesterday, re
One-cent's end 'rounding' into regulation query
The Central Bank yesterday pledged to work with the government’s consumer protection agencies to determine if the Bahamian one-cent coin’s phase-out will spark more regulations.John Rolle, its governor, said it had already “alerted” the relevant enti
Central Bank says 'healthy growth' to resume from 2021
The Central Bank yesterday forecast that The Bahamas will “resume healthy economic growth” in 2021 following a potential Dorian-induced contraction next year as rebuilding gathers pace.The banking and monetary policy regulator, unveiling a much-chang
Govt hit deficit goal at $222m
Hurricane Dorian may have rendered it somewhat academic, but the Central Bank yesterday affirmed the government hit its 2018-2019 deficit target by near-halving the “red ink” at $222.4m.The banking and monetary policy regulator, unveiling its pre-Dor
One-cent coin use to cease by end-2020
The Central Bank yesterday said its plan to end the Bahamian one-cent coin’s use as legal tender by end-2020 will save itself and the banking system $7m over a ten-year period.The regulator, unveiling its rationale for ending the coin’s 54-year histo
Attorneys praise exchange control 'red carpet roll out'
Attorneys yesterday praised the Central Bank’s proposal to relax exchange controls on non-residential real estate deals as “a rolling out of the red carpet that everyone will welcome”.Adrian White, former head of The Bahamas Bar Association’s real es
Credit union consolidation predicted by Central Bank
Small Bahamian credit unions will be forced to merge and consolidate as a result of intensified regulation, the Central Bank is predicting.The regulator, in its just-released 2018 Financial Stability Report, said it was increasing oversight of the se
Business optimism up but profits fall for 57%
Despite 57 percent of businesses suffering a decline in first-half profits, a Central Bank survey has found that nearly-two-thirds believe the economy will improve during 2019’s final months.
Cut 'terrifying' bad loan rate by over 50%
The Central Bank’s governor wants to further cut the “terrifying” 8.7 percent loan delinquency rate by more than half despite it having fallen to its lowest level in a decade.While describing the consistent decline in non-performing bank loans as “ve
Domestic banks in 10% cost increase
Domestic banks and trust companies endured a near-ten percent operating cost increase in 2018 amid continued expense and regulatory pressures on the wider financial services industry. The Central Bank’s survey of the sector’s 2018 contribution to Ba
National debt in $30m fall
The Bahamas’ national debt has seen its first quarterly decline for years as it fell by just over $30m during the three-months to end-March 2019 thanks to a small budget surplus. The Central Bank’s quarterly review for the period, published this wee
IMF queries Central Bank 'independence' over BOB
The government’s majority ownership of Bank of The Bahamas may have impaired the Central Bank’s “independence” in regulating the troubled institution, the IMF has reported.The International Monetary Fund (IMF), in its just-unveiled Article IV and fin
Realtors warn over client KYC ‘overkill’
Realtors yesterday expressed surprise that the Central Bank had identified their industry as posing a higher money laundering risk given the due diligence “overkill” clients currently face.
Domestic banks 'low risk' over financial abuses
The Central Bank yesterday pronounced that domestic banking presents a “low risk” for financial crime, with the main vulnerabilities stemming from three industries - gaming, real estate and money transmission.The regulator, unveiling findings based o
$7.8m caught in payment frauds
Some $7.8m worth of payment fraud complaints were made in 2018, the Central Bank of The Bahamas has revealed, with debit cards accounting for almost 60 percent of cases.
Central Bank’s crypto deposit, credit bar gets mixed reviews
The Central Bank of The Bahamas has received push back to its proposal that banks must not accept crypto currency deposits, or make such loans, to customers.
Banks’ bad loans strike ten-year low
Bad loans commercial banking industry borrowers dropped to under $800m at end-January 2019, falling to their “lowest levels for ten years”.
Vacation rental bookings increase 37% for January
The Bahamas maintained its strong tourism performance through January 2019 with total air departures from Nassau and Airbnb bookings both up by “double digits” year-over-year.
Central Bank: No money laundering sign ‘on any scale’
The Central Bank says “there is nothing” to suggest money laundering occurs “on any scale” in The Bahamas based on its analysis of currency circulation trends.
Central Bank official: OECD tried to 'hobble' permanent residency
A top Central Bank official has accused the OECD of trying to “hobble” the competitiveness of The Bahamas’ economic permanent residency regime by including it in an arbitrary “quasi-blacklist”.
Central Bank to ban 'anonymous' crypto assets
The Central Bank is proposing to ban its licensees from dealing with “anonymous” crypto currency assets, with 84 percent of local institutions saying they have no desire to enter this space.The regulator, unveiling a “discussion paper” on proposals f
Govt debt just short of $8bn
The Bahamas’ national debt was just short of the $8bn mark at end-June, although its growth rate slowed significantly in a second quarter known for generating strong economic activity.The Central Bank of The Bahamas’ just-released report for the thre
Banks backing down on fees
SOME local clearing banks have agreed to lower various banking administrative fees and consider changes to cheque cashing procedures following discussions with the government and other officials, Labour Minister Dion Foulkes said yesterday.
IMF: Bahamas bank fees rise up to 186%
Bahamian banks have increased fees for cross-border transactions by as much as 186 per cent over the last five years, due to growing pressure on their international ties.
PLP blew $234m in final months
An “horrendous” $234 million was added to the Government’s fiscal deficit during the May 10 general election quarter, Central Bank data released yesterday reveals.
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