Article by Julian Francis, Governor, Central Bank of the Bahamas
The Central Bank of the Bahamas has said the phasing out of managed banks in The Bahamas is progressing in accordance with plans.
Under the enhanced regulatory regime introduced by the Bahamas Government at the end of 2000, "managed" banks were required to:
- establish a physical presence in The Bahamas;
- retain at least one resident professional at a director level;
- have committed management resources to ensure the institution operates in accordance with Bahamian legislation; and
- maintain all records in The Bahamas.
Managed banks have been given until June 30, 2004 to establish a physical presence.
In its recent "Bahamas Annual Report & Financial Statement of Accounts", the Central Bank indicated that in the future it will not licence a foreign bank to operate a managed branch from The Bahamas unless its parent organisation already maintains or establishes a subsidiary or branch with a full physical
