The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemdia.net

THE CENTRAL Bank's governor yesterday forecast a further decrease in the number of banks and trust companies operating in The Bahamas, with several smaller entities indicating plans to exit.

John Rolle, pictured, addressing an anti-money laundering/counter terror financing conference organised by the Central Bank, said: "In 2012 about a quarter of the industry worked for Bahamian-owned or headquartered firms. This proportion has increased to one-third.

"We expect to see Bahamian involvement in our international banking sector continue to increase. Where does this leave the international banking and trust sector? Clearly smaller than it was years ago in balance sheet terms, but still substantial.

"The Central Bank expects that the number of international banks and trust companies will decrease some more as several smaller entities have indicated their intent to exit The Bahamas. It doesn't necessarily mean that the funds in the system or employment will be materially affected. We are hopeful that the sector is finding a base from which it can grow."

Mr Rolle added that despite a decrease in funds under management in the industry, employment has been constant over the past several years. "Jobs are holding up despite the decrease in funds under management," he said.

"The Central Bank's interpretation of this is that the remaining international clients are receiving value-added trustee advice and management services. Those services make for stickier clients and also require more staff."