Annual Report & Statement of Accounts, 2023
Published: Monday May 6th, 2024
The Central Bank of The Bahamas is pleased to announce the release of its 2023 Annual Report, which includes a summary of the Bank's operations over the year, an analysis of regulatory developments affecting the financial sector, a review of monetary policy, as well as payment systems developments. The Annual Report also provides an examination of the economic and financial environment, both internationally and in The Bahamas during 2023, and presents a comprehensive analysis of the Bank's Statement of Accounts for the year ending December 31, 2023.
The Report revealed that, the Bahamian economy maintained its growth momentum in 2023, albeit at a moderated pace, supported by continued gains in the tourism sector and stimulus from foreign direct investments. Further, average consumer price inflation moderated, reflective of the pass-through effects of lower global oil prices and reduced cost pressures on imported goods and services. In addition, the fiscal deficit declined notably in FY2022/23, as the value added tax (VAT)-related gain in aggregate revenue outstripped the rise in total spending. Similarly, during the first half of the new FY2023/24, the deficit narrowed, as the expansion in revenue collections, outpaced the growth in expenditure. In the financial sector, both bank liquidity and external reserves decreased in 2023, as domestic credit growth outpaced the rise in deposits.
As a result of the healthy levels of external reserves, sustained improvement in economic activity, and subdued private sector lending trends, the Monetary Policy Committee (MPC) decided that the Central Bank should retain an accommodative stance for domestic credit in 2023.
In terms of other major developments, the Central Bank relaxed its lending guidelines, removing the 15.0% minimum equity injection requirement for borrowers as it relates to residential mortgages that were not secured by mortgage indemnity insurance. Further, in 2023, in line with a sustained focus on strengthening the anti-money laundering and countering the financing of terrorism (AML/CFT) regime, the Bank continued to tailor improvement in guidance issued to the industry. Moreover, the credit bureau initiative continued to advance, as all domestic banks and most of the credit unions were formally reporting data, as at the end of December 2023. The Central Bank also began to explore measures for additional liberalisation of exchange control administration.
A comprehensive breakdown of the Statement of Accounts for the year 2023, showed that the Bank recorded a growth in total comprehensive income, explained by an increase in revenue, along with a reduction in expenses.
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