Photo: Governor of Central Bank of Belize, Kareem Michael
by Kristen Ku
BELIZE CITY, Wed. Dec. 20, 2023
The Central Bank of Belize conducted its second quarterly press conference at its conference room in Belize City today, Wednesday, December 20.
Central Bank governor, Kareem Michael, and deputy governors Hollis Parham and Zetisha Murillo led the conference.
The conference highlighted the Central Bank’s financial stability mandate and various strategic developments. “We’re doing this to build public awareness and continue to encourage engagement and participation in what we believe is a critical sector of Belize’s economy,” emphasized Governor Michael.
The discussions focused on three main areas: ensuring financial stability as a public good, evolving payment and settlement systems, and introducing Practice Direction Number 7.
Drawing upon the European Central Bank’s definition, Michael outlined three conditions for financial stability: the financial system’s resilience to absorb shocks; the efficient allocation of resources from savers to investors; and the reasonable assessment, pricing, and management of financial risks.
To achieve these objectives, the Central Bank utilizes a comprehensive supervisory and monetary framework, beginning with careful monitoring and analysis. This approach involves a preventive strategy, remedial action, and, if necessary, resolution.
A major highlight was the Central Bank’s significant investment in modernizing payment systems. The introduction of apps has prompted an increase in online access, digital payments, and financial account accessibility.
The most recent statistics indicate a rise in online mobile banking usage from 47% to 54%, and an increase in digital payments from 44% to 68% since 2019. These trends are attributed to innovative app software and the adoption of tools such as DigiWallet.
The Central Bank’s future investments are geared toward fast payment services, credit reporting systems, and financial consumer protection, in an effort to create an ethical and fair financial system.
A significant upcoming change announced by Governor Michael is the regulation of bank fees and charges, set to take effect on January 2, 2024. “All banks must reduce or limit ATM withdrawal fees to a maximum of 25 cents per transaction,” he stated, with the goal of eliminating these fees for in-network transactions in the future.
The Central Bank is also addressing other fees, including those for dormant accounts, account closures, and early loan payouts. Additionally, they have committed to stop charging banks for electronic and instant funds transfer on online apps, with reductions for customers expected to fall below $1.00, also effective January 2nd.
“Evidence has shown that it drives positive financial inclusion and therefore enhances the financial stability mandate,” said Governor Michael.