BANKING SYSTEM IN BELIZE
Belize has a well-regulated dual banking system consisting of domestic and international (offshore) banks. The country is known for its stable financial environment, currency pegged to the US dollar, and regulatory oversight by the Central Bank of Belize.
1. Central Bank of Belize
- Established: 1982
- Main Functions:
- Issues the Belize Dollar (BZD)
- Maintains monetary stability (1 USD = 2 BZD)
- Regulates all financial institutions
- Supervises domestic and international banks
- Manages foreign reserves and fiscal policy
2. Types of Banks
A. Domestic (Commercial) Banks
These banks serve residents and operate in Belize dollars. They provide services like:
- Personal & business accounts
- Loans and mortgages
- Debit/credit cards
- Mobile and online banking
- ATM networks
Main Commercial Banks:
| Bank Name | Notes |
|---|---|
| Atlantic Bank Ltd. | Locally incorporated; offers full retail & business services |
| Belize Bank Ltd. | One of the oldest and largest; extensive branch network |
| Heritage Bank Ltd. | Provides local banking, loans, digital banking |
| National Bank of Belize Ltd. | State-owned; supports low-income borrowers and small enterprises |
| ScotiaBank Belize Ltd. (Exiting or has exited) | Was formerly a major player; some operations taken over by other banks |
B. International (Offshore) Banks
These banks serve non-residents and operate in foreign currencies, mainly USD. Common clients include investors, expats, and international companies.
Main Offshore Banks:
| Bank Name | Notes |
|---|---|
| Caye International Bank | Popular with investors; located on Ambergris Caye |
| Belize Bank International | International wing of Belize Bank Ltd. |
3. Credit Unions
- Very popular among Belizeans, especially in rural areas.
- Provide savings, loans, and small-scale financial services.
- Member-owned and non-profit.
- Regulated by the Credit Union Act and overseen by the Central Bank.
4. Financial Services Offered
- Personal & business banking
- Online & mobile banking platforms
- Wire transfers (SWIFT access)
- Foreign exchange services
- ATM services in major towns and cities
- Merchant and card payment systems
5. Regulation & Oversight
- All financial institutions are regulated by:
- Central Bank of Belize
- Financial Intelligence Unit (FIU) – combats money laundering
- International Financial Services Commission (IFSC) – regulates offshore finance and forex
6. Challenges in the Banking Sector
- De-risking by foreign banks has reduced Belize’s correspondent banking relationships.
- Limited access to banking in remote areas.
- Ongoing concerns with money laundering and compliance regulations.
- Some offshore services have faced international scrutiny.
Interesting Facts
- The Belize Dollar (BZD) is pegged at 2 BZD = 1 USD.
- Credit unions often offer better interest rates than banks.
- Belize’s financial sector is friendly to investors but heavily regulated to maintain international credibility.
