BANKING SYSTEM OF BELIZE

The financial system of Belize is comprised of the Central Bank of Belize and a number of financial institutions.
The Central Bank of Belize was established on 1st January 1982 by the Central Bank of Belize Act No. 15 (Chapter 262 of the Laws of Belize Revised Edition 2000). Similar to other Central Banks in the English speaking Caribbean, the Central Bank of Belize is modeled on the Bank of England and its functions include providing banking services to the Government of Belize and financial institutions, issuing the domestic currency, regulating commercial banks and other financial institutions, providing economic advice to the Government, conducting research and publishing information on monetary and other economic developments.
Besides the Central of Belize, the Belizean financial system was composed of 64 financial institutions as at beginning of 2005, and these included:
- five commercial banks;
- eight offshore banks;
- one government-owned development bank (the DFC);
- fifteen credit unions;
- three building societies;
- seventeen insurance companies;
- one government-owned savings bank;
- one government-owned small farmers and business bank; and
- eleven casas de cambio.

Belize passed a new Offshore Bank Act in 1996, which is providing impetus to the development of Belize as an offshore financial center. There are two classes of offshore banks: "A" and "B". A class "A" bank is a general bank, and can conduct any type of banking operations without restriction. The minimum capital required to form a class "A" bank is US$500,000. A class "B" bank cannot conduct business with the general public, but can act as a "captive" bank for an associated group of individuals or companies – in other words, a class "B" bank is a private bank. The minimum capital required to form a class "B" bank is US$200,000.
There must be at least two Belizean resident directors with prior banking experience, but only one shareholder is required and the identities of shareholders are not disclosed (although a register of shareholders must be kept at the registered office).
Belize offshore banks pay no taxes and are not subject to foreign exchange controls. Belizean offshore banks must file monthly returns, and an annual report in a standardized form must be submitted to the Belize Central Bank.

Financial Institutions Operating
Banks and Financial Institutions Licensed Under the Banks and Financial Institutions Act.
There are five domestic commercial banks licensed in Belize that are conducting traditional banking services. The services being offered are different types of consumer and commercial loans, saving and checking deposits and time deposits. Other services provided to business clients include overdraft facilities, letters of credit, and bank guarantees. The commercial banks licensed in Belize are listed below:
- Alliance Bank of Belize Limited
- Atlantic Bank Limited
- Belize Bank Limited
- Scotiabank (Belize) Limited
- First Caribbean International Bank (Barbados) Limited
On 23 January 2003, the first non-bank financial institution was granted a license. Belize Unit Trust Corporation (BELUTC) is the first financial institution in Belize that manages and administers Unit Trust funds Scheme. It is locally managed and its majority shareholder is Trinidad and Tobago Unit Trust Corporation (TTUTC).

Banks Licensed Under the International Banking Act
The first international bank was licensed in 1998 and today there are seven international banks licensed in Belize. These are listed below:
- Atlantic International Bank Limited
- Investment & Commerce Bank Limited
- Inter Bank & Trust Limited
- Handels Bank and Trust Limited
- Market Street Bank Limited
- The Oxxy Bank Limited
- Provident Bank & Trust of Belize Limited
- Caye International Bank Limited.