Bahamas Financial Sector Overview - Banking & Investment
Source: https://www.bahamas.gov.bs/overview-of-the-financial-sector
Archived: 2026-04-23 17:12
Bahamas Financial Sector Overview - Banking & Investment
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Overview of the Financial Sector
Home
Overview of the Financial Sector
Government
Permits and Licences
Business and Finance
Banking in the Bahamas
Ministry of Finance
Key Business Links
Operating a Business in The Bahamas
Bahamas Investment Authority (BIA)
Bahamas Agriculture and Industrial Corporation (BAIC)
Compliance Commission
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Investors
Value Added Tax (VAT)
Government Tender and Projects
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Registration Guide
Resources
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Reports
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Overview of the Financial Sector
The Central Bank of The Bahamas was established on June 1, 1974 under the Central Bank of The Bahamas Act, 1974. Its predecessors are The Bahamas Monetary Authority, which was created in 1968, and the Commissioner of Currency Board, which was established in 1919. The functions of the Monetary Authority included the issue and redemption of currency, supervision of banks and trust companies operations; and administration of exchange control. It was also the custodian of the country's international reserves. The Currency Board was essentially an administrative unit whose function was limited to the issuance and redemption of local currency against the pound sterling at par.
Other Local Financial Institutions
The term 'other local financial institution' refers to all resident banks and/or trust companies other than the commercial banks. Most of the other local financial institutions are involved in trust business. Some of the services they provide include acting as trustees to pension funds and as executors or administrators to the estates of deceased persons.
Trust Companies
The primary function of a trust company is to act as trustee, fiduciary or agent for individuals or firms in a variety of capacities, such as administering trust funds(including their investments) executing wills, acting as custodian for property held in trust, etc. Many trust companies also perform some banking functions, such as, accepting deposits and making loans.
A nominee trust company is a company which holds securities and other assets in its name on behalf of clients of its parent bank or trust company.
Some trust companies are licensed to engage in both trust and banking activities. On the banking side, the proportion of Bahamian dollar business of these companies has been traditionally small, as the majority of their transactions are in foreign currency.
Insurance Companies
The Insurance Act 1969 provides basic protection for the public in its dealing with local insurance operations. It contains provisions governing the registration and cancellation of registration of insurance agents, brokers and salesmen. No person can carry on any insurance business in or from within The Bahamas unless he/she is registered. The Act is administered by the Registrar of Insurance Companies who is responsible to the Minister of Finance. The function of this office is to regulate, inspect, licence and control insurance companies, agents, brokers and salesmen.
There are three categories of insurance operations in The Bahamas :
Life
Life and other than life
Other than life
There are five types of life policies:
Term
Whole Life
Endowment
Industrial Life
Group Life
Other than life policies offer coverage for loss of or damage to property; accident and sickness; and other health-related problems.
Captive Insurance
A
captive insurance
company is an offshore insurance and reinsurance company formed and owned by a parent organization. The main function of a captive insurance company is to insure and reinsure the existing risks of its parent company or the parent's and affiliate branches.
The major advantages of a captive insurance company is that it is able to insure various risks common to the parent company, which traditional insurance companies either refused to insure or insure at an unreasonably high rate.
View the following links for further details:
Commercial Banking
/
Private Banking
/
Other Local Financial Institutions
/
Captive Insurance
Source:
The Central Bank of The Bahamas
Quick Useful Links
The National Honours Society 2026 Call for Nominations
Budget Performance Reports
Budget Documents
Preparing Your Home and Family for a Hurricane
General Orders
Request for Expression of Interest
Hurricane Shelter Listing 2025
Install the BNEA APP
COVID-19 Frequent Asked Questions
Department of Labour’s Jobseekers Portal
Celebrate Bahamas
Load More
For Website Technical Support
Call and speak to a DICT Customer service agent.
+1 242 604 4688
Need to reach the DICT? Send us an email.
support@bahamas.gov.bs
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Accessibility Tool
Content Adjustments
Adjust Font Size
-
Default
+
Highlight Links
Letter Spacing
Dyslexia Font
Color Adjustments
Monochrome
Tools
Mute/unmute
Big Cursor
Reading Guide
Overview of the Financial Sector
Home
Overview of the Financial Sector
Government
Permits and Licences
Business and Finance
Banking in the Bahamas
Ministry of Finance
Key Business Links
Operating a Business in The Bahamas
Bahamas Investment Authority (BIA)
Bahamas Agriculture and Industrial Corporation (BAIC)
Compliance Commission
Financial Intelligence Unit
Office of The Data Protection Commissioner
Bahamas Trade Commission
Investors
Value Added Tax (VAT)
Government Tender and Projects
Tenders and Tender Notices
Programs and Projects
Public Procurement Contract Awardees Report
National Budget
Budget Documents
Budget Press Releases/Speeches
Bills, Subsidiary Legislations, and Resolutions
Budget Preparation FAQs
Budget Performance Reports
Fiscal Strategy Reports
Bills, Laws and Acts
International Agreements
Memoranda of Understanding
Registration Guide
Resources
Publications
Reports
Pamphlets, brochures, other materials
News and Press Release
Overview of the Financial Sector
The Central Bank of The Bahamas was established on June 1, 1974 under the Central Bank of The Bahamas Act, 1974. Its predecessors are The Bahamas Monetary Authority, which was created in 1968, and the Commissioner of Currency Board, which was established in 1919. The functions of the Monetary Authority included the issue and redemption of currency, supervision of banks and trust companies operations; and administration of exchange control. It was also the custodian of the country's international reserves. The Currency Board was essentially an administrative unit whose function was limited to the issuance and redemption of local currency against the pound sterling at par.
Other Local Financial Institutions
The term 'other local financial institution' refers to all resident banks and/or trust companies other than the commercial banks. Most of the other local financial institutions are involved in trust business. Some of the services they provide include acting as trustees to pension funds and as executors or administrators to the estates of deceased persons.
Trust Companies
The primary function of a trust company is to act as trustee, fiduciary or agent for individuals or firms in a variety of capacities, such as administering trust funds(including their investments) executing wills, acting as custodian for property held in trust, etc. Many trust companies also perform some banking functions, such as, accepting deposits and making loans.
A nominee trust company is a company which holds securities and other assets in its name on behalf of clients of its parent bank or trust company.
Some trust companies are licensed to engage in both trust and banking activities. On the banking side, the proportion of Bahamian dollar business of these companies has been traditionally small, as the majority of their transactions are in foreign currency.
Insurance Companies
The Insurance Act 1969 provides basic protection for the public in its dealing with local insurance operations. It contains provisions governing the registration and cancellation of registration of insurance agents, brokers and salesmen. No person can carry on any insurance business in or from within The Bahamas unless he/she is registered. The Act is administered by the Registrar of Insurance Companies who is responsible to the Minister of Finance. The function of this office is to regulate, inspect, licence and control insurance companies, agents, brokers and salesmen.
There are three categories of insurance operations in The Bahamas :
Life
Life and other than life
Other than life
There are five types of life policies:
Term
Whole Life
Endowment
Industrial Life
Group Life
Other than life policies offer coverage for loss of or damage to property; accident and sickness; and other health-related problems.
Captive Insurance
A
captive insurance
company is an offshore insurance and reinsurance company formed and owned by a parent organization. The main function of a captive insurance company is to insure and reinsure the existing risks of its parent company or the parent's and affiliate branches.
The major advantages of a captive insurance company is that it is able to insure various risks common to the parent company, which traditional insurance companies either refused to insure or insure at an unreasonably high rate.
View the following links for further details:
Commercial Banking
/
Private Banking
/
Other Local Financial Institutions
/
Captive Insurance
Source:
The Central Bank of The Bahamas
Quick Useful Links
The National Honours Society 2026 Call for Nominations
Budget Performance Reports
Budget Documents
Preparing Your Home and Family for a Hurricane
General Orders
Request for Expression of Interest
Hurricane Shelter Listing 2025
Install the BNEA APP
COVID-19 Frequent Asked Questions
Department of Labour’s Jobseekers Portal
Celebrate Bahamas
Load More
For Website Technical Support
Call and speak to a DICT Customer service agent.
+1 242 604 4688
Need to reach the DICT? Send us an email.
support@bahamas.gov.bs
Get in touch with our DICT support team.
get in touch
Explore frequently asked questions.
ask question
This site uses cookies to serve our services. By using our site, you acknowledge that you have read and understand our Cookie Policy and Privacy Policy.
Okay, Thanks