Barbados - Banking and securities



The bank of issue is the Central Bank of Barbados. In 1972, it replaced the East Caribbean Currency Authority (ECCA). Commercial banks include the Bank of Nova Scotia, Barbados National Bank, Barclay's Bank, Broad Street, Caldon Finance Merchant Bank, Canadian Imperial Bank of Commerce, Caribbean Commercial Bank, Caribbean Financial Services Corporation, Mutual Bank of the Caribbean, and Royal Bank of Canada. Public institutions include the Barbados Development Bank and the Sugar Industry Agricultural Bank. Barbados has begun development of the offshore banking sector, including the Republic Bank of Trinidad and Tobago in 1999.

The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $571.9 million. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $1.9 billion. The discount rate, the interest rate at which the central bank lends to financial institutions in the short term, was 7.5%.

There is no stock exchange in Barbados, although the Central Bank has established the Barbados Securities Marketing Corp. in anticipation of the future development of a securities exchange. Mutual funds now provide a tax-exempt vehicle for investment in existing shares.

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Apr 20, 2011 @ 6:06 am
Can I use my money in the Barbados National Bank to buy securities such as ETF, or Vangard mutual funds.?

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