This measure is already under policy consideration, with provision for all supervised entities to maintain balances at the Central Bank to be used for clearing purposes. This will be permitted under the proposed amendments to the Central Bank Act.
This is under consideration by the authorities. The CBOB has already completed the work to define the role of an ombudsman and will seek to recruit to the post in 2019.
A payment system is defined as the set of instruments, procedures, actors and infrastructure that ensure the circulation of funds.
The lessons learned during more than a decade of World Bank Group technical assistance, along with the research findings of other international and national agencies, have been merged into a comprehensive package for the development and reform of the national payment systems. Available at: http://www.worldbank.org/en/topic/paymentsystemsremittances
The percentage of the unbanked adults is an approximation based on central bank surveys. The Bahamas has not been included in any of the international Findex surveys (measuring the percentage of adults with bank account access, among other metrics) conducted so far.
E-money is value stored electronically in a device such as a chip card or a hard drive in a personal computer.
By March 2019, a second e-money issuer, CaribPay, was licensed in the Bahamas.
In August 2018 the CBOB eliminated the exchange control restriction on access to B$ accounts by non-residents.
More on open banking available in the European Payment Systems Directive (PSD2): https://www.ecb.europa.eu/paym/intro/mip-online/2018/html/1803_revisedpsd.en.html
CPMI guidelines on cyber security for financial market infrastructures available at: https://www.bis.org/cpmi/publ/d146.pdf
ECB guidelines on cyber security available at: https://www.ecb.europa.eu/paym/pdf/cons/cyberresilience/Cyber_resilience_oversight_expectations_for_financial_market_infrastructures.pdf
The system allows for the processing of truncated cheques as well.
Banks argue that this is to cover the operating costs and also to disincentivize users from withdrawing and using physical cash and rather use debit cards for payments.
See footnote 1.
For more on the countries that have already implemented instant payments, please see CPMI (2016) report available at: https://www.bis.org/cpmi/publ/d154.pdf
For more on merchant electronic payment acceptance, please see the World Bank and World Economic Forum (2016) study available at: http://www3.weforum.org/docs/Innovative_Solutions_Accelerate_Adoption_Electronic_Payments_Merchants_report_2016.pdf
CBOB consumer survey (2018) available at: http://www.thebahamasinvestor.com/wordpress/wp-content/uploads/2018/04/075358700.pdf
The digital currency project contemplates interoperability.
For financial inclusion purposes, the main use cases of government disbursements are: public sector salaries, pensions, and social assistance payments.
“An Analysis of The Bahamas Financial Literacy Survey”, Central Bank of The Bahamas, 2018.
More on the OECD financial education frameworks available at: http://www.financial-education.org/home.html
More on the World Bank financial literacy work available at: http://documents.worldbank.org/curated/en/775401468171251449/Oversight-frameworks-and-practices-in-114-economies-full-report
In this architecture, the back-office work needed from commercial banks to process salary payments would be significantly reduced, which could be an argument for the government to negotiate with them lower fees for processing payments from or due to government entities.
More on the World Bank Greenback Project available at: https://remittanceprices.worldbank.org/en/project-greenback-20-remittances-champion-cities
I. Ruprah and R. Sierra, 2016, An Engine of Growth? The Caribbean Private Sector Needs More than an Oil Change, Inter-American Development Bank.
The fund was guaranteeing loans up to BS$250,000 dollars on maximum term of 10 years.
The fund was guaranteeing loans up to BS$500,000 dollars on maximum term of 15 years.
Psychometric scoring is currently seen as a way to bring SMEs and other thin-file clients on board to begin with. There is no order of things of course, and in a market like The Bahamas authorities should pursue all avenues to collect the information (through FinTechs or through the bureau). Regardless of the provider, data used and scoring techniques, there needs to be a mechanism to ensure that all creditors use the most comprehensive information possible. Alternate scoring providers should be encouraged to consult with credit bureaus and vice versa to enable the most comprehensive overview of the borrower’s level of indebtedness.
While some invoice discounting products exist in the market, they are rarely offered since they are neither legally defined, nor does a register of invoices supporting e-invoicing exist.
Omni Financial Group Limited is developing a receivables finance program with the support of the IDB. It plans to launch its new accounts receivable financing (factoring) product, combined with a digital platform, to help expand access to finance for Bahamian SMEs. Omni was approved for $1 million funding through the IDB’s Multilateral Investment Fund (MIF), which is a private sector arm of the IDB Group.
In April 2019 the government published the Digital Asset and Registered Exchanges (Dare) Bill for consultation.