The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Central Bank has teamed with the commercial banking sector to reduce cash and promote greater efficiency in how banking is conducted, its Governor said, adding that the Bahamas was witnessing notable growth in cashless transactions.

Speaking at the opening of Royal Bank’s (RBC) Old Fort Bay branch on Monday night, Wendy Craigg said: “We are witnessing in the Bahamas notable growth in transactions that are taking place through ABM’s, online banking and certainly now, mobile banking.

“In fact, banks in collaboration with the Central Bank have underway several initiatives aimed at the need for reducing cash and promoting greater efficiency in how banking is conducted in the Bahamas.”

Mrs Craigg said that since the global financial crisis, growth in banks’ credit portfolios in the Bahamas has been “muted”.

“We haven’t see much growth at all in private sector credit. As a matter of fact, it has been on the decline. Regardless of this, banks have proven to be quite resilient,” she said.

“They’re maintaining very high capital positions to support their operations. We are satisfied that the system remains stable and sound, which are key for promoting the long-term economic growth and development objectives of the Bahamian economy.”

Mrs Craigg said banks in the Bahamas reach their customers through an extensive branch network, totaling some 89 locations at the end of 2013.

“This represents a per capita coverage of one branch per 4,000 Bahamians. RBC accounts for about 30 per cent of the network,” said Mrs Craigg.

RBC invested more than $3 million in its latest branch at Old Fort Bay, which replaces its Lyford Cay location. The Old Fort Bay branch employs 14 persons, and RBC boasts a network of 26 branches in the Bahamas.