COUNTRY PROFILE
Total land area:........................ 22,800 sq. km.
Official language:..................... English
Administrative divisions:........... Six districts
Legal system:........................... English law
Executive branch:..................... Chief of state‹Queen Elizabeth II, represented by a governor
general. Head of government‹prime minister. Cabinet
appointed by the governor general on advice from the prime
minister.
Legislative branch:.................... Bicameral National Assembly
Judicial branch:......................... Supreme CourtECONOMIC PROFILE
Currency: Belize dollar (BZ$)
GDP: US$520.7 million (1997)
Real GDP growth (at factor cost): 4.4 (1997p)
GDP (average annual growth rate): 5.9 (1988-1997)
GDP per capita (1990 US$): 2,296.7 (1997)
Consumer price index (average annual growth rate): 1.0% (1997)
Central government fiscal balance (% of GDP): -2.0 (1997)
Money supply (M1) (% of GDP): 15.1 (1997)
Interest rate (weighted nominal average deposit rate): 6.7 (1997p)
Current account balance: -US$42.1 million (1997)
Trade balance: -US$80.7 million (1997)
Main commodity exports: Sugar, citrus fruits, bananas, clothing, fish products, molasses, wood.
Main commodity imports: Machinery and transportation equipment, food, manufactured goods, fuels,
chemicals, pharmaceuticals.
Nominal exchange rate (BZ$/US$): 2.0 (1997)
Real effective exchange rate (Index 1980=100): 100.3 (1996)BANKING SYSTEM
Total number of banks in the system: 5
Types of banks: 4 commercial banks and 1 offshore bank.
Total amount of assets: BZ$835.7 million
Total amount of deposits: BZ$ 721.1 million
Total amount of capital or net worth: BZ$51.1 millionBANKING INSTITUTIONS
I. Banking Supervision
1. The primary supervisory body is the Financial Sector Supervision Department of the
Central Bank of Belize.
2. The department is an arm of the government, not an independent agency.
3. The supervisory authority consults with the minister of finance.
4. The supervisory body examines a minimum of two banks each year.
5. There is no examination rating system.
6. Bank examinations are conducted using the CAMEL rating system. The main
components of CAMEL are analyzed to ensure soundness of the bank.II. Consolidated Supervision
1. The home country supervision authority can perform consolidated supervision
of banks within Belize. However, the lack of branches of locally incorporated
banks abroad implies that the supervisory authority does not perform
comprehensive supervision on a consolidated basis.
2. Prior consent from Belize is required to open or close a banking establishment
in a foreign country.
3. Prior consent from Belize is required to open or close a foreign banking
establishment in the country.
4. Belize has the right to gather information from its cross-border banking
establishments, but presently the country is only receiving financial statements
from its foreign offices.III. Interest Rates
1. Interest rates on loans are determined by the market.
2. Interest rates on deposits are determined by the market.IV. Insurance on Deposits
1. Belize has no deposit insurance.
2. Insurance limits are not applicableV. Trade Finance
1. Belize defines trade finance as short-term financing of exports and imports.
2. When dealing with export finance, import finance, pre-export finance, working
capital finance, capital goods finance, letters of credit and drafts, the risk is fully
borne by banks rather than by the government.
3. In cases of bank liquidation, the Banks and Financial Institution Act of 1995 is
silent on the financing items mentioned above.
4. The banking system does not make specific provisions or require reserves for
treatment of trade finance obligations during bank liquidations.VI. Capital Adequacy
1. The beginning capital needed for local banks equals US$1.5 million; for foreign
banks, the worldwide fully paid and unimpaired capital equals US$25 million
and the fully paid and assigned capital US$1.5 million.
2. The minimum capital required to operate a banking institution is measured by the
ratio of equity to risk-weighted assets. A bank must maintain 9% of total risk-
weighted assets. Capital adequacy is measured according to the following categories:Categories Percentages
Well-capitalized Above 9% of total risk-weighted assets
Adequately capitalized 9% of total risk-weighted assets
Fairly capitalized Below 9% of total risk-weighted assetsVII. Asset Quality
1. Loan portfolio classification:Definition % of reserves
Special mention (SM) None
Substandard (S) 100% of unsecured portion
Doubtful (D) 50%
Loss (L) 100%2. In addition to the specific reserves mentioned in VII.1. above, the banks must
maintain 1% of the remaining loan portfolio as a general reserve.
3. The legal lending limit is 25% of capital with collateral and 15% without it. There is
no percentage of net worth. All loans over 25% of capital must be approved by
the Central Bank after consultation with the minister of finance.
4. Investment portfolios are not categorized according to criteria such as
hold-to-maturity, available-for-sale or trade portfolios.
5. Belize has no method for evaluating the investment portfolio.
6. The valuation of the investment portfolio requirement does not affect the profit
and loss statement.VIII. Liabilities
1. The minimum reserve requirements on bank liabilities are calculated as follows:
According to the Banks and Financial Institutions Act of 1995, every bank shall
maintain a minimum balance on account with the Central Bank which on average
shall be equivalent to at least 5% of its average deposit liabilities represented by
demand deposits, plus at least 3% of its average deposit liabilities not represented
by demand deposits, or such higher proportion of such demand deposits or other
deposit liabilities as may from time to time be prescribed or specified by the Central
Bank. Also, every bank shall maintain a minimum aggregate holding of approved
liquid assets which on average shall be equivalent in value to at least 15% of its
average deposit liabilities, plus at least 10% of its average deposit liabilities other
than demand deposit liabilities, or shall be such higher proportions of such demand
deposit or other deposit liabilities as may from time to time be prescribed or
specified by the Central Bank.Liabilities % of total assets % of total deposits
Demand deposits 26% 7%
Time deposits 26% 7%
Deposits in local 26% 7%
currency
Deposits in foreign 26% 7%
currency
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2. The following deposit categories are offered by banks in domestic and foreign
currency: savings, time and demand deposits.
3. There are no limits on deposits.
4. There are no limits on the level of concentration of any type of deposit.