## The Bahamas: Technical Assistance Report-Operationalizing the New Bank Resolution Framework and Amended Deposit Insurance Legislation—First Mission

_IMF Staff Country Reports, August 21, 2023_

## Source details

**Canonical URL:** [The Bahamas: Technical Assistance Report-Operationalizing the New Bank Resolution Framework and Amended Deposit Insurance Legislation—First Mission](https://www.imf.org/en/publications/cr/issues/2023/08/21/the-bahamas-technical-assistance-report-operationalizing-the-new-bank-resolution-framework-538395)

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## Bibliographic details
- Published: August 21, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400248276.002

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### Summary and principal findings
- The report analyses operationalizing the new bank resolution framework and amended deposit insurance legislation for The Bahamas.
- The Bahamas has made considerable progress in developing the infrastructure needed for an effective bank recovery and resolution regime.
- The Central Bank of the Bahamas (CBOB) should strengthen the design of recovery planning requirements.
- The institutional arrangements for bank resolution should be strengthened.
- The CBOB is responsible for bank supervision, the resolution of nonviable banks, and depositor protection.
- The operationalization of the resolution regime should be facilitated by the development of a resolution “toolkit.”
- Domestic inter-agency cooperation and coordination are essential for an effective response to financial institution distress and failure.
- Cross-border cooperation arrangements for recovery and resolution, as well as for crisis management, should be enhanced.
- Operational capacity to manage financial crises should be enhanced.
- The authorities should undertake regular testing of crisis management and resolution arrangements, including through inter-agency crisis-simulation exercises.

### Policy recommendations and operational priorities
- Strengthen the design of recovery planning requirements for banks.
- Enhance institutional arrangements for bank resolution to clarify roles and responsibilities.
- Develop and operationalize a resolution “toolkit” to facilitate execution of the resolution regime.
- Improve domestic inter-agency cooperation and coordination mechanisms for responding to financial institution distress and failure.
- Enhance cross-border cooperation arrangements for recovery and resolution and for crisis management.
- Build and strengthen operational capacity to manage financial crises.
- Conduct regular testing of crisis management and resolution arrangements, including inter-agency crisis-simulation exercises.

### Institutional roles and responsibilities
- Central Bank of the Bahamas (CBOB):
  - Responsible for bank supervision.
  - Responsible for the resolution of nonviable banks.
  - Responsible for depositor protection.

### Operational tools and mechanisms
- Development of a resolution “toolkit” is recommended to facilitate the operationalization of the resolution regime.
- Recovery planning and resolution planning frameworks need clearer design and stronger requirements.

### Crisis preparedness, testing, and cross-border cooperation
- Regular testing of crisis management and resolution arrangements is recommended.
- Inter-agency crisis-simulation exercises are recommended to strengthen operational readiness.
- Cross-border cooperation arrangements for recovery and resolution, and for crisis management, should be enhanced to address international dimensions of financial institution distress.

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- **1bhsea2023001**
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_Source: https://www.imf.org/en/publications/cr/issues/2023/08/21/the-bahamas-technical-assistance-report-operationalizing-the-new-bank-resolution-framework-538395_