Bank Supervision

Basel II and III Implementation Program

The Central Bank of The Bahamas (‘the Central Bank’) has adopted a Basel Implementation Program comprising elements of both the Basel II and III frameworks. The Central Bank’s Basel Implementation Program is expected to be both pragmatic and flexible, thus taking into account the types of banks and the scale of their operations within this jurisdiction.

The Central Bank proposes to stage the execution of its Basel Implementation Program in three phases with a full roll-out over a 30-month timeline. The formal program commenced in Q3 of 2013 and is expected to end Q4 of 2015, with the effective ‘go live’ implementation set for Q1 of 2016.

 

Guidelines for the Management of Capital and the calculation of Capital Adequacy

Published Thursday December 1st, 2016

These Guidelines outline the overall framework adopted by the Central Bank for assessing the adequacy of a bank’s capital. The Central Bank aims to ensure that all banks maintain a level of capital that is consistent with the risks to which they are exposed arising from their business activities. The Central Bank endorses the Basel Committee’s Paper of June 2006 titled International Convergence of Capital Measurement and Capital Standards: A Revised Framework – Comprehensive Version (Basel II) and Basel III: A global regulatory framework for more resilient banks and banking systems” (Basel III). The Central Bank has adopted the approach recommended by the Basel Committee.

Bank Supervision