The Tribune

By NEIL HARTNELL

Tribune Business Editor

THE National Insurance Board's (NIB) foreign investment portfolio expanded by $21.9 million to hit $59.4 million by year-end 2011, it was revealed yesterday, the social security system having taken up 88 per cent of its annual allocation.

The Central Bank of the Bahamas, in its 2011 annual report, said NIB's use of its annual $25 million overseas investment allocation stood in contrast to the Bahamian Depository Receipt (BDR) programme available to local broker/dealers for their investment funds, with only just over 50 per cent being taken up.

"Only two BISX Broker Dealers participated in the non-sponsored Bahamian Depository Receipt (BDR) programme," the Central Bank said.

"Of the $25 million allocated for the programme during 2011, some $12.7 million was drawn, compared with $13 million in 2010. By contrast, the National Insurance Board (NIB) utilised $21.9 million of its $25 million allotment, which more than doubled the $9.4 million applied for in 2010.

"At end-2011, overseas capital investments (excluding capital gain/losses) under the BDR programme totalled $48.7 million, and the NIB's portfolio reached $59.4 million."

When it came to the financial system's clearing and settlement system, the Central Bank said the Bahamas Automated Clearing House (BACH) processed some 3.025 million cheques, worth $6.176 billion, during 2011 - increases of 2.05 per cent and 3.98 per cent respectively over 2010 levels.

" In 2011, the ACH network commenced the facilitation of direct credit transactions (payroll and bill processing), processing approximately 1.099 million transactions valued at $573.4 million," the Central Bank said.

"Banks are now focused on making operational changes to accommodate, in 2012, the introduction of customer initiated payments (e.g. utility bill payments), which over time are expected to reduce cheque utilisation."