Annual Report & Statement of Accounts, 2022
Published: Monday May 15th, 2023
The Central Bank of The Bahamas is pleased to announce the release of its 2022 Annual Report, which includes a summary of the Bank's operations over the year, an analysis of regulatory developments affecting the financial sector, a review of monetary policy, as well as payment systems developments. The Annual Report also provides an examination of the economic and financial environment, both internationally and in The Bahamas during 2022, and presents a comprehensive analysis of the Bank's Statement of Accounts for the year ending December 31, 2022.
The Report showed that, the robust recovery of the Bahamian economy was sustained in 2022, underpinned by a further rebound in tourism and steady stimulus from foreign direct investments. However, domestic price pressures increased, mirroring the pass-through effects from higher global oil prices and elevated costs on imported goods. In addition, the fiscal deficit narrowed significantly in FY2021/22, given a strong recovery in value added tax (VAT) collections, which led the revenue boost, and outpaced the rise in total spending. Similarly, during the first half of the new FY2022/23, the deficit decreased, as the revenue rebound continued. In the financial sector, both bank liquidity and external reserves grew in 2022, as the credit expansion trailed the corresponding gains in deposits.
Given the healthy levels of external reserves, sustained economic growth and mild consumer credit demand, the MPC decided that the Bank should maintain an accommodative posture for domestic credit in 2022.
In terms of other major developments, in August 2022, the Bank relaxed the regulatory stipulated maximum total debt service ratio (TDSR) on personal lending to 50.0%, from within a range of 40.0%-45.0%. Also, the Bank sanctioned up to 100.0% financing of borrower requests, for qualified personal loans other than residential mortgages, as opposed to the previously mandated minimum 15.0% equity or down payment requirement. In addition, the Bank lifted the moratorium on new license applications for money services business, owing to the abatement of pandemic conditions and the Bank’s assessment that the sub-sector was in a healthier position to establish a stable footing going forward. Efforts also gained more traction around implementation of international risk-based supervisory standards for financial institutions, and development of the crisis management frameworks for Bahamian banks and credit unions.
A comprehensive breakdown of the Statement of Accounts for the year 2022, revealed that the Bank recorded an increase in total comprehensive income, as the rise in revenue offset the increase in expenses.
For full text reading, please download the attached document.