Trends in the Domestic Banking System: Addressing Fees. Remarks by Governor John A Rolle Delivered at the Bahamas Institute of Chartered Accountants, Accountants’ Week

Published: Wednesday November 13th, 2024

Introduction

I want to begin by congratulating the Bahamas Institute of Chartered Accountants (BICA) on another successful Accountants’ Week. The BICAs is a trusted and important institution, which plays a critical role in our country’s financial services landscape, nurturing and overseeing the development of The Bahamas’ professional accounting industry. Forums such as this, provide an avenue for the necessary exchange of knowledge to foster innovation and expansion within the sector.

Therefore, I am happy to be a part of the dialog.

There has been significant public discourse on the state of banking in The Bahamas, including very engaged discussion on fees and the quality of services. The Central Bank has signaled that it is doing important work in this area but mindful of the balanced approach, which ought to be taken, in an archipelago where efficiency and stability concerns intersect with dissatisfaction over the adequacy of the supply of services. Our initiatives do underscore the importance that digital innovation must play in the sector and, therefore, have some pointed relevance to this week’s theme.

To lay the foundation, I will focus my presentation on trends within the domestic banking sector, their impact on consumers, and the policy implications. In particular, I will give a brief assessment of key balance sheet trends—including credit growth, deposits and liquidity—followed by an analysis of bank profitability. This will help frame the kinds of interventions, which we think are needed to alleviate structural constraints within the sector, support a return to more conventional patterns of earnings, strengthen the sector’s viability, and enhance the consumer experience.

For further reading please view the download.