Central Bank Governor John A. Rolle presented remarks today at the Grand Bahama Chamber of Commerce Luncheon in Freeport, Grand Bahama. He spoke to the origins of de-risking, the impacts and implications for The Bahamas’ financial system and on what needs to be done to mitigate its effects. This included an overview of the correspondent banking model – considered integral to the topic – and key international drivers behind the current trends. The Governor also looked at the implications for The Bahamas, gave some insights on how the Central Bank has been engaged in various international forums on this issue, and then discussed what is being done to tackle matters from a strategic and policy perspective. In this connection, he spoke to the importance of reforms to achieve more formal integration of all economic actors into the financial sector – with appropriate risk-based safeguards – and the importance of strengthening the information trust bonds between banks and their customers.
He expressed the hope that his remarks will serve to inform even more constructive national dialogue on this topic. He said, *”This is an emerging and evolving issue that affects us all. If we react appropriately, there would be no cause for panic.”*
Click [here](http://centralbankbahamas.com/download/015732500.pdf) for a copy of the Governor’s Presentation.