FAQs

Banker to Banks

What does it mean when we say that the Central Bank acts as a Clearing House?

In the morning of each official business day, and under the supervision of an Officer of the Central Bank's Banking Department, representatives of the commercial banks meet at the Central Bank to exchange cheques honoured by each bank on behalf of the other. Immediate settlement of balances arising out of the mutual claims and debts is effected through a credit or debit entry on the respective banks' account held with the Central Bank. In the afternoon, a special clearing facility is provided to accommodate various inter-bank payments such as loans and repayments of loans. At this clearing, cheques are drawn by commercial banks on their accounts with the Central Bank, and are presented directly by the banks' representatives to cashiers in the Banking Department, for immediate settlement.


  1. What does it mean when we say that the Central Bank acts as a Clearing House?
  2. What is a Commercial Bank?
  3. How many commercial banks are there in The Bahamas?
  4. What is the Prime Rate and who sets this Rate?
  5. What have been the changes in the Prime Rate over the past few years?
  6. Does the Central Bank set the interest rates, fees and other charges that commercial banks charge their customers?


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