The Central Bank Of The Bahamas’ Contribution To The
2016-2017 Budget Communication
Indications are that the financial sector remained relatively stable over the year,
Annex A
maintaining healthy capital levels in 2015. However, with ongoing adjustment in international
operations, licensee activity softened.
The number of banks and trust companies licensed to operate within The Bahamas
contracted by 5 to 249, extending the decrease of 13 in 2014. In addition, licensed entities
operating through a physical presence―the majority of the banks and trusts—declined by 4 to
232, while the branch operations of firms―53% from G-10 countries—operating under
approved management arrangements comprised the remaining 17, which was 1 less than in
2014.
Positive trends were reflected for private trust companies (PTCs), which increased by 7
to 112 and for Registered Representatives of PTCs, which rose by 1 to 18. The number of
licensed non-bank money transmission businesses (MTBs) and non-bank money transmission
agents (MTAs) remained at 2 and 11, respectively.
CAPITAL MARKETS
Activity in the local capital markets remained relatively subdued over the review period,
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2016/2017
DRAFT
ESTIMATES
OF REVENUE &
EXPENDITURE
as the volume of shares traded on the Bahamas International Securities Exchange (BISX)
decreased by 21.0% to $3.1 million; however, the corresponding value grew by 36.8% to $20.5
million. Further, supported by broad-based gains in share prices, the BISX All Share Index—a
market capitalization weighted index—firmed by 9.9% to 1,824.0 points, albeit less than the
previous year’s 13.1% growth.
At end-December, the market capitalization of listed entities stood at $3.7 billion, a gain
of 4.1% over the prior year, while the number of publicly traded securities rose by 3 to 32 and
comprised 20 common share listings, 8 preference share offerings and 4 debt tranches.
PAYMENT SYSTEMS MODERNIZATION
In 2015, the payments environment remained relatively robust, as both businesses and
the wider public continued to utilize a number of payment platforms to execute their
transactions. In this regard, the volume of cheques cleared via the Bahamas Automated Clearing
House (BACH)—which is responsible for processing cheques and other small-value payments
(under $150,000)—fell modestly by 2.3% to 2,743,182, while the associated value of these
transactions increased by 8.9% to $7.7 billion. Similarly, large value payments (over $150,000)
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