Article by Julian Francis, Governor, Central Bank of the Bahamas
Despite the decline in economic growth during 2001, there was no aggregate loss of employment in the financial services sector and, in fact, the sector's contribution to the gross domestic product was reported to have increased by 7%, totallng $432 million. Employment growth has been attributed in part to the increase in compliance and other personnel needed in the wake of an enhanced regulatory regime for the sector.
In a recent address to the Bahamas Chamber of Commerce, the Central Bank Governor said the new legislation was seen to be essential in that it safeguarded the financial services sector's reputation. "From our point of view, one does need to weigh this cost [compliance related] against the belief that this more comprehensive regulatory system in the longer term is more beneficial to our financial services sector", he said.
