Banking Regulations and Compliance in The Bahamas Simplified with New Capital Regulations

The Central Bank of The Bahamas has recently announced a major development in banking regulations, aimed at creating an optimal capital regime for the country’s banking system. This simplification is expected to reduce regulatory compliance costs while promoting financial system stability.

Simplified Basel III Framework

The Bahamian Basel III framework has been simplified through the gazetting and implementation of the Bahamas Capital Regulations, 2022, which took effect on July 15th. These new regulations aim to balance safety, efficiency, and competitiveness while ensuring financial system stability.

Key Features

• Consistency with proportionality principles set out by the Basel Committee
• Simplification of capital management and calculation of capital adequacy
• Revised guidelines for easier navigation and reduced regulatory burden

Increased Transparency

Industry stakeholders will welcome the fact that the new regulations are now available on the Central Bank’s website, along with responses to comments and questions received during a second round of industry consultation. This increased transparency is expected to increase confidence in the banking system and facilitate compliance with the new regulations.

Accessing the Regulations

• The Bahamas Capital Regulations, 2022 can be accessed via the Central Bank’s website under “Core Functions” -> “Bank Supervision Department” -> “Financial Industry Regulations”
• Guidelines for the Management of Capital and Calculation of Capital Adequacy are available under “Guidelines” -> “Prudential Limits and Restrictions”
• The Inspector of Banks and Trust Companies has also made relevant documents available to the public.

By simplifying banking regulations, The Bahamas aims to create a more efficient and stable financial system, while promoting confidence among industry stakeholders.