FAQs

Banker to Banks

Does the Central Bank set the interest rates, fees and other charges that commercial banks charge their customers?

No, the Central Bank does not set interest rates nor any other fees or charges required by commercial banks. The Central Bank sets only the Discount (Bank) Rate, which is the rate at which it lends to banks. Banks might adjust their Prime Rate, the rate at which they lend to their best customers, in response to changes in the Discount Rate, but the ultimate rate offered to consumers and investors is at the discretion of commercial banks; bank fees and charges are set solely by the banks themselves.


  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?


Available FAQs