Bank Of America's Presence In Belize: Unveiling The Mystery

Belize's banking system is modelled after the British and American banking systems, with all banks owned by or affiliated with banks in Europe and North America. The country has four commercial banks regulated by the Central Bank of Belize. While there is no Bank of America in Belize, the Belize Bank was formerly the Royal Bank of Canada. Belize Bank has 11 offices across the country and is the largest commercial bank in Belize, with a 37% share of deposits and 41% share of loans in the country.

Belize's banking system

The Central Bank of Belize is responsible for formulating and implementing monetary policy, focusing on the stability of the exchange rate and economic growth. It also exercises tight oversight over the banking industry, requiring banks to retain suitable liquidity and asset ratios in respect of loans and liabilities. No bank has ever failed in Belize.

The country's commercial banks include Heritage Bank, Belize Bank, and Atlantic Bank. These banks offer services such as savings accounts, loans, credit cards, and mortgages. They also have modern conveniences such as ATM machines. However, banking hours in Belize are shorter, typically only until 1 or 2 p.m. most days, and some banks close for lunch.

In addition to commercial banks, Belize also has a thriving system of credit unions. These credit unions often cater to specific sectors such as teachers, public officers, or farmers, and they are a popular alternative to commercial banks as they charge simple interest. The largest credit union in Belize is the Holy Redeemer Credit Union, affiliated with the Roman Catholic Diocese.

Belize also has a system of offshore banks, which are international banks that serve non-residents. These banks are regulated by the Central Bank of Belize and offer services such as international bank cards, demand accounts, savings accounts, and time deposit accounts. Accounts with these banks are not subject to local taxes or exchange control restrictions.

Overall, Belize's financial system remains underdeveloped, with a stable but fragile banking sector. There are currency controls in place, and foreign investors seeking to convert, transfer, or repatriate funds must comply with Central Bank regulations.

Bank of America's international presence

Bank of America has a strong international presence, serving clients in numerous countries across the globe. The bank's reach extends beyond the United States and Canada, with a significant presence in Europe, the Middle East, Africa, and Asia.

In Europe, Bank of America has established offices in several key cities, including London, Paris, Frankfurt, Athens, Dublin, Milan, Amsterdam, Stockholm, and Zurich. The bank also has a presence in the Middle East and Africa, with locations in cities such as Doha, Riyadh, Cape Town, Johannesburg, Madrid, and Istanbul.

In Asia, Bank of America has a strong foothold in China, with offices in Beijing, Guangzhou, and Shanghai. The bank also has a presence in other Asian countries, including India, Japan, Malaysia, the Philippines, Singapore, South Korea, Taiwan, and Thailand.

While there is no specific mention of a Bank of America branch in Belize, the bank has partnerships with international ATMs worldwide, including in Central America. Additionally, Bank of America previously had a correspondent banking relationship with Belize Bank, which was terminated in 2016 due to correspondent bank de-risking.

With its extensive global network, Bank of America offers its clients international banking services, providing access to various currencies and facilitating seamless transactions across borders. The bank's international presence empowers businesses and individuals to conduct financial operations worldwide, leveraging the bank's expertise, solutions, and commitment to shared success.

Belize's economy

Belize has a developing free-market economy, with a focus on agriculture, tourism, and services. The country's economy is primarily based on exports, benefiting from its proximity to large markets in the US and Mexico.

In the 20th century, the country's economy shifted again, this time to cane sugar, citrus fruits, bananas, seafood, and apparel. Agriculture in Belize employs about one-fifth of the population, with most farms being smaller than 100 acres. The country has about 8,090 square kilometres of arable land, but only a fraction of this is under cultivation. The main agricultural exports are citrus fruits, sugar, and bananas. In 2018, Belize produced 1.7 million tons of sugarcane, 100,000 tons of oranges, 80,000 tons of bananas, and 77,000 tons of maize, as well as smaller yields of papaya, rice, and soy.

Belize's trade deficit has been growing due to low export prices for sugar and bananas. The country's primary trading partners include the US, the UK, China, Mexico, Curaçao, Panama, and members of the Caribbean Community and Common Market (CARICOM). Belize's chief exports are seafood, sugar, citrus products, bananas, and clothing, while its main imports are machinery, transport equipment, food, fuels, lubricants, and chemicals.

Tourism is a major source of foreign income, with Belize's natural assets, including the Belize Barrier Reef, offshore islands, and Mayan ruins, attracting visitors. The industry expanded rapidly in the 1990s, and the number of tourists increased fivefold from the late 1990s to the mid-2000s. In 2011, tourist arrivals totalled 888,191, mostly from the US, and tourism contributed 176 million USD to Belize's GDP.

Belize's banking system is modelled after the British and American systems, with all banks owned or affiliated with European or North American banks. The country has four commercial banks regulated by the Central Bank of Belize, which issues the Belize dollar. The Belize dollar is tied to the US dollar at a rate of 2:1.

Belize's banks and credit unions

Belize's banking system is modelled after the British and American banking systems, with all banks owned by or affiliated with North American and European banks. The country has four commercial banks regulated by the Central Bank of Belize.

The three main commercial banks in Belize are the Belize Bank, the Heritage Bank of Belize, and the Atlantic Bank. The Belize Bank is the largest commercial bank in Belize, with a 37% share of deposits and 41% share of loans in the country. It has 11 branches across the country and offers both local and international credit cards under the VISA and MasterCard brands. The Heritage Bank of Belize is the newest of the commercial banks and has offices in Belize City, Big Creek, and San Pedro. The Atlantic Bank has been operating since 1971 and has 15 locations nationwide with a network of 18 ATMs.

In addition to the commercial banks, Belize also has a thriving system of credit unions. Some of these cater to specific sectors such as teachers, public officers, or farmers, while others are affiliated with churches. The largest credit union in Belize is the Holy Redeemer Credit Union, which has over 60,000 members and $650 million in assets.

When it comes to foreign currency, the Belize dollar is officially tied to the US dollar at an exchange rate of 2 Belize dollars to 1 US dollar. However, money changers often give a slightly higher rate, and the actual exchange rate can vary from day to day. It is important to note that the Belize dollar is difficult, if not impossible, to exchange outside of Belize, except in border areas of Guatemala and Mexico.

For international transactions, Belizean banks typically charge a 3% international transaction fee. Additionally, there may be delays in processing wire transfers, especially for US dollar transfers, which can take up to 3 days to be approved by Belizean banks.

Overall, while Belize's banking system may be smaller than that of other countries, it offers a range of services and conveniences similar to those found in larger economies.

Belize's currency

The official currency of Belize is the Belize dollar (BZD). The Belize dollar is pegged to the US dollar at a rate of 2 BZD to 1 USD. This makes it easy for American visitors to exchange their money, as they can simply bring US dollars and use them interchangeably with BZD. However, it is important to note that US coins are not accepted in Belize, and it is recommended to carry smaller bills as they are more widely accepted than large ones.

The history of the Belize dollar dates back to the 19th century when British Honduras, as Belize was then known, operated using the British sterling monetary system. However, in the mid-19th century, the silver peso of neighbouring Guatemala drove the British currency out of circulation. As most imports were coming from New Orleans in the United States, a new currency was introduced based on the US dollar, bringing British Honduras in line with Canada.

In 1885, 1 cent coins were issued, followed by higher denominations in 1894. This year also saw the first issue of banknotes by the government and a switch from the silver Guatemalan peso to the gold US dollar as the base for the currency. The rate was set at $4.866 = 1 pound, which was slightly higher than the rate of the US dollar to the Spanish dollar due to the former being based on the average weight of a selection of worn Spanish dollars.

Over time, the composition of the coins changed, with cupronickel replacing silver in the 25-cent coins in 1952, and the 50 and 10-cent coins following suit in 1954 and 1956, respectively. The 1-cent coin reduced in size in 1954 and switched to a scalloped shape in 1956. Aluminium 1 and 5-cent coins were introduced in 1976, and a nickel-brass, decagonal 1-dollar coin was introduced in 1990.

In terms of banknotes, the government introduced notes in denominations of 1, 2, 5, 10, 50, and 100 dollars in 1894. Production of 50 and 100-dollar notes ceased after 1928, and 20-dollar notes were introduced in 1952. In 1973, British Honduras was officially renamed Belize, and a new family of notes was introduced with the new country name. The Central Bank of Belize was established in 1982, and the first notes issued under its name were dated 1st July 1983.

Frequently asked questions